ASSIGNMENT-1 ENTREPRENUERIAL LEADERSHIP

Assignment-1 EntreprenuerialLeadership

Abstract

Theworld is stillsufferingfromthelatesteconomiccrisis. Moreover, nowadayspeopleareuprising in ordertoobtainmorehumanrights, democratizationandbetterlivingconditions.

ASSIGNMENT-1 ENTREPRENUERIAL LEADERSHIP

Inthisdelicatesituation, whilesomecompaniesarestrugglingwithsomeeconomicproblemsanddebtsandgoingintobankrupcy, someothersareenjoyingtheirearningsandprofits. Whatarethedifferencesbetweenthesecompanies? Why do somecompanieshavetroubleswiththeirdebtsand how do someothersmakeprofits? Arethe main reasonsforthissituationjusteconomiccrisisorongoinguprisingeventsaroundtheworld, orcompaniesstructuresandeconomicindicators? Maybesomethingdifferent? Can it be managementoradministration of company ?Orlack of leadershipandentreprenuarism? Whatwearegoingtolookforaretheanswersof some of thesequestions.

Keywords:

Leadership, Entreprenuer, Transformational, Transactional

EntreprenurialLeadership Thelatestdevelopments in thetechnologymadetheeconomies of countriesand market moredynamic. In a dynamic market thepace, magnitudeanddirection of changecontinuouslyaccelerates. (Tarabishy, Fernald&Solomon,year)Inthisdynamic market,

ASSIGNMENT-1 ENTREPRENUERIAL LEADERSHIP

thecompanieseitherhavetokeepupwithpace of market ordisappear.However, it is verydifficultforthecompaniestoadaptthemselvesintocontinuouslychangingmarket conditionsandto besuccesful. Steve Case has statedthewaywhichgoestosuccess,in terms of success, in business, probably success in any organization, but particularly success if you are focusing on being an entrepreneur, it requires the three P's. And the three P's are: people, passion, and perseverance. . If you have all of those together in the right balance, almost anything is possible. If you don't, nothing is possible.(Steve Case, Conference, year) People is themain driver in business not only in terms of leadership but alsoentrepreunership. Thebusinesswhichisabletocombineleadershipandentreprenuershipwilllikelyto be verysuccesful. Inthisrespect,entrepreunerialleadership is veryimportanttofindnewalternativesandinnovationsbychoosingcorrectpeople, correctproduct, correcttimingtodominate market andbenefitfrom it. This can be achievedwiththehelp of highlymotivatedandeducatedmembers of organizations. Accordingto James Kouzesleadersshouldmotivatetheiremployeesby ; - Settingexamplesbasedupon a clear set of valuesandaboutexpectations,

-Inspiringshortvisionaboutexpectations,

- Challenge theprocessaboutsearchingforopportunitiestogrow,

- Enablingotherstoact,

- Celebratingvaluesandvictories (Kouzes, year)

ASSIGNMENT-1 ENTREPRENUERIAL LEADERSHIP

Withthemotivatedmembers of business, entreprenuerialleadersenvisionthefuture of business, andifthere is a needfortransformation, he/shemakes it happen.The main goal of theseleaders, as Peter F. Druckerhas stated theentreprenueraims at leadership, if not dominance, in new market ornewindustry. (Drucker,1985) But this can not be realizedwithoutthelast P, Perseverance as Steve Case has mentioned.Sometimes ittakesyearstocomeinto market anddominate on it. Lacking of perseverancemightleadcompanyorleadersto fail since everydevelopment has theirexact time.

Alltheinformationsaboveleads us to Ayman, FernaldandSolomonsentrepreneurialleadershipdefinitionwhich is entrepreneurialleadership is one of an enterprising, transformationalleaderwhooperates in a dynamic market thatofferslucrativeopportunities.( Ayman,Fernald&Solomon, year)

Describewhattype of organization a transactional, transformational, andauthenticleaderwouldthrive in themost, as well as whichtype of leaderwouldthrivetheleast.

TransformationalLeadership

Transformational Leadership is more appropriate for the organization in which one or more persons engage in such a way that leaders and followers raise one another to higher levels of motivationand morality. (money-zine.com webpage,2011) The same understanding, also stated bySashkin and Rosenbach, is that transformational leadership entails both leaders and followers raising each others motivation and sense of higher purpose. (Sashkin&Rosenbach, 1998) In this perspective, the transformational leadership is appropriate when the goals of the

ASSIGNMENT-1 ENTREPRENUERIAL LEADERSHIP

organization accepted by all members and when high performance expectations occurred. (money-zine.com webpage,2011)

TransactionalLeader

As stated by Cherry (2011), Transactional leadership, also known as managerial leadership, focuses on the role of supervision, organization and group performance. (Cherry, 2011) This leadership type thrives mostly in vertical type of organizations where the chain of command is definite and clear, workers are motivated by rewards and punishments and obeying the instructions and commands of the leader is the primary goal of the followers. (Cherry, 2011) In this type of organization if workers do their jobs, there is no need to do anything but if they do better or worse than they have to, they are to be awarded or punished.

Evaluation of the resources and tools available through the Small Business Administration and SCORE.

Managing and developing business need some additional resources and tools which are provided by different organizations through the Small Business Administration(SBA). Just leadership and entrepreneurship or the combination of these two, Entrepreneurial leadership, are not enough to improve businesswhich would dominate market. The resources which are listed in SBAs web pageand details of them are listed below.

Advocacy(SBAs webpage, 2011)

The leaders needs consultation against continuously changing market in order to deal with uncertainty and their concerns. According to webpage The Office of Advocacy conducts

ASSIGNMENT-1 ENTREPRENUERIAL LEADERSHIP

economic research, policy analyses and small business outreach help to identify issues of concern. (SBAs webpage, 2011)

Disaster Assistance(SBAs webpage, 2011) As stated in the webpage, SBA's disaster assistance program helps entrepreneurs develop security strategies and offers loan assistance to businesses impacted by a disaster. (SBAs webpage, 2011) The leaders wish to sustain organization after any disasters either natural or economical.

International Trade(SBAS webpage,2011)

In order to dominate market, the business has to know what the needs of market areand information about export markets. Related this issue SBAS web page has stated Export information and development assistance to help small businesses take advantage of export markets. (SBAs webpage, 2011)

Of all these resources, which are mentioned in SBAs webpage, Entrepreneurial Development which is provided by SBA's Office of Entrepreneurial Developmentis the most useful tool. If any individual or cooperation have enough resources, finance, employee, vision for the future and courage to make vision happen, they can start a small business. However, starting a business one thing, meeting the markets needs and survival in todays dynamic market is another thing. In order to survive and develop, a small business needs additional assistance. This assistance is met by SBA. SBAs website has stated this assistance by SBA's Office of Entrepreneurial Development helps small businesses start, grow and be competitive by providing

ASSIGNMENT-1 ENTREPRENUERIAL LEADERSHIP

training, counseling and other forms of management and technical assistance. (SBAs website, 2011) Any organization without further assistance mentioned above is not likely survive and sustain for a long time.

Leadership Practices

There are different leadership practices in all businesses either they are big or small. Some examples are listed below which has been stated by Kouzesand Posner (P.3-4).

Challenging The Process (Kouzes& Posner, 2001, P.3-4) The unique thing which is not changed is changing itself. From this point of view, all the businesses need to be changed and keep up with the dynamics of the market. As stated by Kouzes and Posner, Leaders search for opportunities to change the status quo. They look for innovative ways to improve the organization. (Kouzes& Posner, 2001, P.3-4) Kouzes& Posner has also stated that this process requires making experiments and taking risks, both of which involves making mistakes and failures. (Kouzes& Posner, 2001, P.3-4)

Inspiring A Shared Vision (Kouzes& Posner, 2001, P.3-4)

It is very important for leader to visualize the future of business and make employees be part of it. Every improvement begins with imagination which helps to design the future of businesses. What is more important isto make employees to be part of visualizing process either by brainstorming or using different techniques. The participation of the members into visualizing future process contributes to adopt the ideas about future.

ASSIGNMENT-1 ENTREPRENUERIAL LEADERSHIP

Enabling Others To Act (Kouzes& Posner, 2001, P.3-4) Making the members of the business act by themselves generally is difficult. This can be achieved by positive or negative motivation. Negative motivation includes different kinds of punishments which is not beneficial to establish a team spirit. Positive motivation techniques and making the members of business know what they do, what the goal of company is, what the roles they have to assume help to act members themselves. Leaders should encourage members to act themselves by using differentmotivation techniques.

Modeling The Way (Kouzes& Posner, 2001, P.3-4)

Uncertainty prevents improvements. For that reason, the leaders should establish an agreed roadmap which helps people to know what the next step is. This roadmap should also include alternatives for the possible negative situation.

Encouraging The Heart (Kouzes& Posner, 2001, P.3-4)

The leaders can move businesses to a visualized future with members contributions. This can be provided easily by gaining hearts and minds and by establishing team spirit. If the leaders achieves this, it would be very easy to encourage the team to achieve goals.

Managing the New Technologies(Family business expert webpage ,2011)

Competition between companies is gradually increasing in accordance with the developments in technology and the costs are decreasing. In order to compete with other market members, acquiring new technologies and new product methods are needed.

ASSIGNMENT-1 ENTREPRENUERIAL LEADERSHIP

References :

ASSIGNMENT-1 ENTREPRENUERIAL LEADERSHIP

10

Tarabishy A.,Fernald L. W. & Solomon G. T. (year). UnderstandingEntrepreneurialLeadership in todaysDynamicMarkets,Retrievedfrom http://usasbe.org/knowledge/proceedings/ proceedingsDocs/USASBE2003proceedings-21.pdf

Case S., People, Passion, Perseverance: Youve Got Entrepreneurship , Retrieved from http://www.entrepreneurship.org/Video/PodcastDetails.aspx?ID=21660 &http://ecorner.stanford. edu/authorMaterialInfo.html?mid=2363

KouzesJ., Podcast: Rising to the Leadership Challenge, Retrieved from http://www.amanet.org/training/podcasts/James-Kouzes-on-Rising-to-the-LeadershipChallenge-08-27.aspx.

Drucker P.F., Entrepreneurial Strategies, California Management Review, Winter 85, Vol. 27 Issue 2, p 9-25.

SBAs webpage, Small Business Resource Links, Retrieved from http://www.score.org/small_biz_power_links.html#a_2

K o u z e s J. M .&P o s n e r B. Z .(2001), Leadership Practices Inventory, Retrieved from http://www.consummatecoaching.com/images/LPI-WB_book.pdf

Family business expert webpage (2011),29 Leadership Practices Provide The Foundation For Successful Organizations From dr. The Practitioner's Guide To Organizing Organization, Retrieved from http://www.family-business-experts.com/leadership-practices.html

ASSIGNMENT-1 ENTREPRENUERIAL LEADERSHIP

11

Money-zine.com (2011),Transformational Leadership, Retrieved from http://www.moneyzine.com/Career-Development/Leadership-Skill/Transformational-Leadership/

Sashkin, M. & W. E. Rosenbach. (1998). Visionaryleadershiptheory: A currentoverview model, measures, andresearch (WorkingPaper 9-114). Washington DC: GW

Cherry K. (2011), What Is Transactional Leadership? Retrieved from http://psychology.about.com/od/leadership/a/transformational.htm