ENTREPRENEUR

LEADERSHIP

Definition
The word entrepreneur is derived from the French verb enterprendre. It means to
undertake.
The term entrepreneur was applied to business initially by the French economist, Cantillon,
in the 18th century, to designate a dealer who purchases the means of production for combining
them into marketable products.

JOSEPH A. SCHUMPETER
The entrepreneur in an advanced economy is an individual who introduces something new in the
economy.
Entrepreneur is who innovates, raises money, assembles input, chooses managers and sets the
organization going with his ability to identify.

Cont.
An entrepreneur engages in energetic behaviors in conjunction with social
networking in order to innovate and instill a competitive advantage.
(DeCarolis & Saparito, 2006).
To support this theory, this author proposes an entrepreneurial behavioral
theory and taxonomy that entrepreneurs are different from other leaders
because:
1) they create resources.
2) they solve problems.
3) they take action.
4) they lead
5) they build organizations.

QUALITIES
&
CHARACTERISTICS

Innovation
Achievement
Leadership

Action
Organizational
growth

Innovation
has a keen sense of discovering and creating solutions to unmet needs
that others have perhaps not thought of or considered.
Locke (2000) describes this innate talent as entrepreneurial vision.
Baum & Locke (2004) suggest the foresight to uncover the potential
of some market, technology, product or service (p. 596), is an
entrepreneurial skill that defines the initial creation of entrepreneurial
leadership.
The entrepreneurs passion to see possibilities, create new paradigms
andpursue their dreams is what drives him/her to the next discovery.

Honig(2001) describes the discovery process as critical to

entrepreneurial activity(p. 23). This defining characteristic of
entrepreneurial leadership provides the organization a competitive
advantage to pursue business initiatives that others have yet to foresee,
encourage or practice (De Carolis & Saparito, 2006).

Achievement

An entrepreneur is driven by a compelling purpose to make the new

discovery a reality.
Activities such as brainstorming, mind mapping, andpossibility thinking
are examples of idea generation that entrepreneurs formulate to generate
possible opportunities toward the envisioned solution.
The intensity and optimistic manner to theorize and devisepotential
products or services ignites a collection of options that may or may notbe
feasible, factual or data-driven.
This entrepreneurial approach to strategy formulation produces
possibilities and levels of thinking that may baffle the conventional thinker
(Covin, Green & Slevin, 2006).
In times of confusion, adversity, and anxiety the entrepreneur transforms
what could be counterproductive emotions to fueling achievement,
commitment and persistence.
Enjoy channeling obstacles into getting things done almost to the degree of
what Clifford & Cavanaugh (1985) refer to as obsessive commitment (p.
13).

Action
* Entrepreneurs take action from their gut, intuition and instinct rather than
contemplate over whether the decision orrecommendation will work.
* This ability to take action and engage in risk taking may have advantages and
disadvantages.
* The advantage may be if the decision doesnt work the entrepreneurial style is to take
action on an alternative decision.
* This aptitude to be proactive, implement and persistently believe in theproposed
solution provides the entrepreneur with an entrepreneurial orientation that may elevate
an organization to a higher level of strategy achievement.
* Covin, Green & Slevin (2006) propose the disadvantages to the entrepreneurialpace
to include:
1) engaging in a non-participative style of decision making.
2) 2)creating a higher rate of failure.
3) 3) slowing the rate of learning from previous failures.
* Cope (2005) proposes an entrepreneur has a keensense and an ability to cope with

Leader

* An entrepreneurial leader is committed, passionate and direct about

theirbeliefs, core values and leadership philosophy.
* To be authentic is to be true. Followers respond to leaders that are true to
themselves and to others.
* Self leadership is being true to one's character.
Entrepreneurs are stronger in emotional intelligence by turning:
- adversity into determination,
- frustration into motivation
- stress and anxiety into self-reflection (Cross &Travaglione, 2003).
Entrepreneurs express authenticity by communicating their emotions, addressing
situations head on and expressing their point of view for improvement (Cross
&Travaglione, 2003).
Hogan, Curphy & Hogan (1994) suggest that leadership ispersuasion, not domination.
Leadership only occurs when others willingly adopt, for a period of time, the goals of a
group as their own (p. 493).

Organizational Growth

The entrepreneur pursues and persists to create a unison of people that will
help him or her fulfill his or her innovations and solutions (Cope, 2005).
Kelleher recognized three areas of leadership vital to success:
1. Trust that people will make the right decisions.
2. If something isnt working abandon it.
3. Network and socialize with others to ensure other thought.
Leaders provide guidance when times get tough.
Kelleher practiced the art of letting go by encouraging people within the
organization to take action, learn from their mistakes and solve their own
problems. This ability to trust, be patient and allow for errors to occur does
not come naturally to entrepreneurs(Matta &Ash kenas, 2003).
Entrepreneurs are notorious for hanging on to their ideas, even if they are not
working. Kelleher suggests that entrepreneurs need to let go of their ego and
stop doing what is not working rather than permit a failure to drain
organizational resources.

IMPACTS
&
IMPLICATIONS

Effectual principles can be illustrated with jars of

marbles
You win the game by selecting a red marble

1: Predictable

2: Risky

Entrepreneurship is like Jar 3

3: Unknowable

Expert entrepreneurs add as many red marbles as they

can
You win the game by selecting a red marble

3: Unknowable

And they make friends who have more red marbles to add

Or else they create a new game where blue marbles

win
You win the game by selecting a blue marble

3: Unknowable

If they and their friends only have blue marbles

Be a Secure Base for employees to create the future

Person, place, or
thing that will
always be there for
you
Gives you
confidence to take
risks
Identify and lean on
your secure bases

How can a Entrepreneur Lead?

A Entrepreneur can lead through three different

ways/Styles

Leader and Task

Leader and Group
Leader and Situation

Leader and Task

University of Michigan

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

University of Michigan

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

Leader and Group

Low

Leader
Authority
High

High
Group autonomy
in decisionmaking
Low

Participative

Consultativ
e

Paternalistic

Autocratic

Leader and Situation

Must move away from using autocratic/ dictatorial

leadership style
Must be skillful at using informal influence
Must be expert at conflict resolution

ADVANTAGES
&
DISADVANTAGES

Advantages
Control.
You choose the work you like to do and that makes the most of your strengths and
skills. The result can be more job satisfaction.
Excitement.
exciting and highly enjoyable. filled with new opportunities to challenge your abilities
and skills.
Flexibility.
Can schedule working hours around other commitments, such as spending quality
time with their families.
Freedom.
Freedom to work whenever they want, wherever they want, and however they want.
Subordinates love working under this type of leader.

Disadvantages
* Administration.
While making all the decisions can be a benefit, it can also be a burden. Working under
this type of leader comes with a lot of paperwork that can take up time and energy.
* Work Schedule.
The work schedule can be unpredictable. Some works may take longer hours to
complete.
* No Guarantees of Success
As this leadership take risks and does not focus on planning thus success is not a
guarantee and to achieve success sometime they have to try a few solutions.