ENTREPRENEURIAL LEADERSHIP

Learning objectives

To give brief introduction of entrepreneurship and leadership. To give know how about the successful entrepreneurs. To explain the role of entrepreneurs as a leader.

Entrepreneur & Entrepreneurship?

An entrepreneur is an individual who owns a firm, business, or venture, and is responsible for its

development. Entrepreneurship is the practice of starting a new business or reviving an existing business,

in order to capitalize on new found opportunities.

Successful Entrepreneurs

There are six dominant themes for successful entrepreneurs:

Leaderships Commitment and determination Opportunity seeker . High ( Calculated ) risk, ambiguity and

uncertainty Creativity self reliance and ability to adapt. Motivation to excel and Team Management .

Who is leader……….?

A leader is a person who can influence or motivate others to do what he wants them to do.

What is leadership…….?

The process of influencing a group

towards the achievement of

goals.Leadership is the art of motivating a group of people to act towards

to achieving a common goal.

Food for Thought

An entrepreneur who starts his own business generally does so because he is a difficult employee.

He is probably finds it difficult to be in the alternating dominant and then submissive role so often asked of management.

He also believes he can do the job better than others, which may be true BUT……..

He must find a way of working with and through others if the business is to grow.

Entrepreneurial Leadership

Entrepreneurial leadership is about systematic and purposeful development of leadership skills and techniques which can take a long time. It is about the developing relationships. It is about creating long term sustainable competitive advantage based upon architecture of entrepreneurial leadership.

Role of Entrepreneurs as a leader

A successful entrepreneurs are ‘patient leaders, capable of instilling tangible visions and managing for the long haul.

These elements include in the job for leader: Having vision and ideas. Being able to undertake long term strategic planning. Being able to communicate effectively. Creating an appropriate culture within the firm Monitoring and controlling performance. Having the courage to delegate Controlling the business by monitoring information rather

than by direct physical intervention.

An entrepreneur must change his role towards these FUNCTIONAL disciplines i.e

Marketing Accounting People Management all change

In other words the business needs to become more formal without becoming more bureaucratic.

So the challenge is not only in developing the business but also to cope with the managerial change facing the founder.

Having your own vision is relatively easy. Building a shared vision is no easy task.

The challenge for an entrepreneur is to convert the contractual employee of an economic entity into committed member of a purposeful organization.

Challenges for entrepreneur during growth of firm

Growth through creativity

Growth through direction

Growth through delegation

Growth through coordination

Crises of Leadership

Crises of autonomy

Crises of control

Crises of red tape

Collaboration

Entrepreneurial Organization structure

Spider’s Web Spider’s Web Grows

Entrepreneurial Organization structure

Hierarchical Structure

Matrix Structure

Churchil and Lewis Growth Model

Existence

Survival

Success

Take off

Maturity

Disengagement

Growth

How can a Entrepreneur Lead?

A Entrepreneur can lead through three different ways/Styles

Leader and Task Leader and Group Leader and Situation

University of Michigan

Employee-oriented:Emphasize interpersonal relations

Production-oriented:Emphasize the technical or task aspects of the job

Leader and Task

University of Michigan

Research findings:

Leaders who are employee oriented are strongly associated with high group productivity and high job satisfaction.

Leader and Group

Participative Consultative

Paternalistic Autocratic

Low HighHigh

Low

Group autonomy in decision-making

Leader Authority

Leader and Situation

Must move away from using autocratic/ dictatorial

leadership style

Must be adept at using informal influence

Must be adept at conflict resolution

Role of Entrepreneurial Leadership

The primary role of good entrepreneurial leader is to build an entrepreneurial architecture.

The entrepreneurial architecture creates with in the organization the knowledge and routines that allow it to respond flexibly to change and opportunity in the way the entrepreneur does.

It is a very real and valuable asset that creates competitive advantage and can be sustained

Constructing an Entrepreneurial culture

Hofstede (1990) explain different dimensions of organizational culture in an attempt to discriminate between entrepreneurial and administrative organizations.

Timmons, Peters (1997) and Cornwall and Perlman (1990) explain tits following elements:

People and empowerment focus Commitment and personal responsibility Doing the right thing Value creation through innovation and change Hands on management Freedom to grow and fail Attention to basics Emphasis on future and sense of urgency.

Remember

“Management is doing things right; Leadership is doing the

right things”

Peter F. Drucker