3/5/2014

Importance of Entrepreneurial
leadership

Entrepreneurial Leadership

Entrepreneurial leadership will accelerate

achievement of organizational goals,
enhance organizational performance

Leadership and Context

Leadership has meaning in a visioning, creative and
organizing context
The organizational context must be embedded in the
mission and mandate implicitly or explicitly.
The leader creates and implements the strategic plan
as a means to achieve the mission and purposes set
out for the organization.
The leader through a set of entrepreneurial acts seek
to achieve objectives intended to realize the mission
and mandate

Leadership Types
Leadership Type

Organization Level

Leaders and Entrepreneurs

Entrepreneurs must have certain leadership
characteristics, such as:
A passionate faith and belief in the vision of the
product or service idea of the organization or agency
The capability to give direction and to motivate
others through his/her vision
The capacity to mobilize resources and apply
knowledge to the transformation of those resources
into goods and services that provide the greatest
benefits to society.
A sense of social justice

Differences in Leadership Types

Function

Difference in Leadership Styles

Transactional

Technical

1st

Level Supervisor

Fix it

Transactional

Middle Management

Motivate it (behavioral)

Transformational

Senior Managers

Create it or Change it

Entrepreneurial

Senior Managers

Create it or Change it

Focus

Approach

Transformational

Entrepreneurial

Day-to-day
activities

Organization
Change

Development
of tasks

Immediate
payback

stake in the ground

Creative rearrangement

Investment

Committed

Communications

As

investment

Symbolic

Opportunity
Building/creating
moving stake
Creative destruction then
rearrangement

Staged investment

Intimate, personal

Medium term, exit strategy

conditions
demand
Strategy

Situational
analysis

Long term, stay the

course

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Transformational and Entrepreneurial

Leadership

Corporate Entrepreneurial Leadership

Dedication and
availability to listen and
give consultation, help
Momentum for new
projects
Futuristic vision
Rallies others efforts to
meet challenges
Foster innovative
culture

Transformational leaders and entrepreneurial leaders are

linked in leadership qualities:
passion
vision
stubbornness

Transformational leadership may become entrepreneurial

leaders
Transformational leaders productively co-exist with
entrepreneurial leaders, particularly in corporate
environments

Entrepreneurial leader traits

Leading like an entrepreneur requires:

locus of control
Tolerance
Willingness to hire people smarter than oneself
Consistent drive to create,/change
Passion for an opportunity, Sense of urgency
Perseverance
Resilience
Optimism

Manager Vs Entrepreneur
Manager
TENDS TO BE SHORT-TERM ORIENTED
Focus Period TOWARDS ACCOUNTING PERIODS

Risk
Goals

General leadership, by another widely cited definition,

Consists of strategic vision coupled with the ability to influence and
motivate others through the systems, processes and culture of an
organization (Kotter, 1990).

Entrepreneur
TENDS TO BE LONG-TERM PROBLEM ORIENTED

LOW RISKTAKER, TRIES TO AVOID

HIGHER RISKTAKER, TRIES TO LEARN FROM
MAKING MISTAKES
MISTAKES MADE
EXTERNAL
STANDARDS, ORIENTED
TOWARDS REWARDS AND PUNISHMENTS INTERNAL STANDARDS, REWARDS HIMSELF OR
IN THE ORGANIZATION
HERSELF

Characteristics-common to both
leaders and entrepreneurs

Entrepreneur Vs Leader
According to one widely cited definition,
General entrepreneurship is the pursuit of opportunity beyond the
resources one currently controls (Stevenson and Gumpert, 1985).

Overcomes bureaucracy
Displays enthusiasm
Changes course quickly
when needed
Encourages peer and
other initiatives
Inspires others to
pursue own ideas
Reward and recognize ,
Motivate

Vision
Problem-solving
Decision-making
Risk-taking,
Strategic initiatives.

Entrepreneurial leadership to be a fusion of these two

constructs: Having and communicating the vision to engage teams
to identify, develop and take advantage of opportunity in order to
gain competitive advantage.

3/5/2014

Entrepreneurial Leadership

Entrepreneurial Leadership
Three characteristics

Launching a new venture requires a

special kind of leadership

Vision
Dedication and drive
Commitment to
excellence

Courage
Belief in ones convictions
Energy to work hard

8-13

Entrepreneurial Leadership

8-14

Entrepreneurial Leadership

Vision may be entrepreneurs most

important asset

Dedication and drive are reflected in hard

work

Ability to envision realities that do not yet exist

Exercise a kind of transformational leadership
Able to share with others

Patience
Stamina
Willingness to work long hours
Internal motivation
Intellectual commitment to the enterprise
Strong enthusiasm for work and life

8-15

8-16

Five essential qualities of an

Entrepreneurial leaders

Entrepreneurial Leadership

Vision and dissatisfaction with the present.

Knowing and taking advantage of your unfair
advantages.
The ability to get people on board and add to
the vision
Flexibility to adapt, openness to feedback, and
the ability to learn
Persistence and execution

To achieve excellence, entrepreneurs

must
Know the customer
Provide quality products and services
Pay attention to details
Continuously learn
Surround themselves with good people

8-17

Source : Forbes.com

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Social Entrepreneur
Entrepreneur who work towards community
or social benefits, not just a profit motive. A
social entrepreneur recognizes a social
problem and uses entrepreneurial principles
to organize, create and manage a venture to
achieve social change