Encouraging Employee Entrepreneurship: Benefits and Guidelines

For small businesses, the idea of encouraging employees to pursue their own entrepreneurial ventures might initially seem daunting. However, embracing employee entrepreneurship can bring numerous benefits. Let's explore the advantages, relevant guidelines, and success stories of businesses that have encouraged side hustles.

Should Small Businesses Encourage Employee Entrepreneurship?

While the thought of employees engaging in side hustles may conjure up images of potential competition or resource misuse, it is important to consider the broader context. Companies like Thinkific, with hundreds of employees, have found that encouraging entrepreneurship among their staff can be highly beneficial for the company as a whole. Here are some key points to ponder:

No direct competition: If employees are starting businesses that are not directly competing with the company, they can attract buyers and customers that may not have discovered the company otherwise. Not using company resources: Employees should be encouraged to use their own resources and time. This ensures that the company remains free from conflicts of interest. No pyramid schemes: Ensuring that any entrepreneurial activities are not pyramid schemes is crucial. This prevents any legal or ethical issues from arising.

Encouraging employees to explore their own entrepreneurial ventures can be a double-edged sword. On one hand, some may find their true passions and become so engaged that they hop from one opportunity to another. On the other hand, others might discover that their current roles already offer the creativity and leadership they crave. Regardless of the outcome, the company benefits from a culture that supports and encourages innovation.

Understanding the Golden Age of Side Hustles

According to recent statistics, approximately 57 million Americans are engaged in side hustles. This trend is not only prevalent but is continuously growing. As a small business owner, it is important to recognize how this trend can impact your organization. Here are some key takeaways:

Side hustles represent a significant portion of the workforce, and many of these side businesses are thriving.

Flipping Roles

After experiencing the role of both employee and employer, the journey can be eye-opening. As a former team member and now a CEO with hundreds of employees, I have witnessed firsthand the impact of side hustles. Initially, the news of a team member pursuing a side hustle may feel disheartening. However, as you come to terms with the reality, you can gain a new perspective. Here are some guiding principles:

The scarcity mentality needs to be replaced with an abundance mentality. Passion is a renewable resource that can enrich both the individual and the company.

My Experience and Learnings

The shift in mindset is crucial. Recognizing that our employees' side hustles can enhance their engagement and motivation in their primary roles can lead to a more dynamic and progressive company culture. Some companies that have successfully embraced this mindset include:

LinkedIn's InCubator: Provides employees with time off to develop their own product ideas. Apple's Blue Sky Program: Offers vacation days to pursue personal projects. Ad agency HUGe: Encourages employees to pitch startup ideas and provides funding and office space.

These companies understand the value of employee happiness, creativity, and engagement. By fostering a supportive environment, they attract talent who are motivated and passionate about their work.

Establishing Guidelines for Side Hustles

While it can be challenging to fully embrace employee side hustles, setting clear expectations can help maintain productivity and alignment with the company's goals. Here are some guidelines to consider:

Be transparent: Encourage open communication between employees and their colleagues. This fosters trust and enhances team cohesion. Focus on output: Employers should be concerned with the results, not the hours spent working. Flexibility in work hours can help employees balance their side hustles with their company responsibilities. Don't let your team down: Ensure that employees are present and engaged during critical company meetings. This demonstrates commitment and reliability. Understand the trade-off: Recognize that pursuing a side project may reduce an employee's capacity to take on additional responsibilities. This awareness helps both the employee and the company make informed decisions.

By implementing these guidelines, small businesses can create an environment that supports employee growth while maintaining the integrity of the company.

In conclusion, encouraging employee entrepreneurship can be a win-win situation for both employees and the organization. With the right mindset and guidelines in place, businesses can thrive in the golden age of side hustles. Let's embrace this trend and build a more innovative and dynamic workplace culture.