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.
 To explain the role of entrepreneurial leadership.
 How we can construct entrepreneurial culture.
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 obsession
 Tolerance of risk, ambiguity and uncertainty
 Creativity self reliance and ability to adapt.
 Motivation to excel.
Who is leader……….?
Someone who can influence others and who
has managerial authority
or
A leader is a person who can influence or
motivate others to do what he wants them
to do.
(Burns,
2007)
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.
(Burns,
2007)
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……..
(Burns,
2007)
Food for Thought
 He must find a way of working with and through
others if the business is to grow.
 And here the person must start to make a transition
from being a mere entrepreneur to a leader.
(Burns,
2007)
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.
(Burns,
2007)
Creating an
agenda
Management vs.
Planning Leadership
and budgeting,
Establishing direction,
establishing detailed steps and
timetables for achieving needed
results and allocating resources
accordingly
developing a vision of the future,
often the distant future and
strategies for producing the
changes needed to achieve vision
Developing a
human
network for
achieving the
agenda
Organizing and staffing,
establishing some structure for
accomplishing plan
requirements, staffing,
delegating responsibilities,
providing policies, and creating
monitoring systems
Aligning people, communicating
the directions and accept their
validity
Execution
Controlling and problem solving, Motivating and inspiring,
monitoring results and plans in
energizing people to overcome
some detail, identifying and
barriers by satisfying their needs
solving problems
Outcomes
Producing a degree of
predictability and order,
consistent production of
expected results
Producing change, often to
dramatic degree, potential to
produce extremely useful change
(Timmons,
Role of Entrepreneurs as a leader
A successful entrepreneurs are ‘patient leaders, capable of
instilling tangible visions and managing for the long haul.
There five 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.
(Burns,
2007)
Role of Entrepreneurs as a leader
 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.
(Burns,
2007)
Role of Entrepreneurs as a leader
 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.
(Burns,
2007)
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 that creates
competitive advantage and can be sustained
(Burns,
2007)
Three Principles of Entrepreneurial Leadership
 Treat others as you would want to be treated
 Share the wealth that is created with all those who have
contributed to it at all levels
 Give back to the community
(Timmons,
2008)
Challenges for entrepreneur during growth of
firm
Growth through creativity
Crises of Leadership
Growth through direction
Crises of autonomy
Growth through delegation
Crises of control
Growth through coordination
Crises of red tape
Collaboration
(Burns,
2007)
Entrepreneurial Organization structure
Spider’s Web
Spider’s Web Grows
(Burns,
2007)
Entrepreneurial Organization structure
Hierarchical
Structure
Matrix Structure
(Burns,
2007)
Churchil and Lewis Growth Model
Disengagement
Existence
Growth
Success
Survival
Maturity
Take off
(Burns,
2007)
How can a Entrepreneur Lead?
 A Entrepreneur can lead through three different
ways/Styles



Leader and Task
Leader and Group
Leader and Situation
(Burns,
2007)
Leader and Task
University of Michigan
Employee-oriented:
Emphasize interpersonal relations
Production-oriented:
Emphasize the technical or task aspects of the
job
(Burns,
2007)
University of Michigan
Research findings:
Leaders
who are employee oriented are
strongly associated with high group
productivity and high job satisfaction.
(Burns,
2007)
Managerial Grid
Appraises leadership styles using two dimensions
Concern for People:
Measured leader’s concern for subordinates on
a scale of 1-9
(low to high)
Concern for Production:
Measured leaders’ concern for getting job done
on a scale of 1-9
(low to high)
(Burns,
2007)
The Managerial Grid
(1,9)
(9,9)
9
Concern for People
8
7
6
(5,5)
Impoverished
Management
5
Exertion of minimum effort to get
required work done is appropriate
to sustain organizational
membership
4
3
2
1
(9,1)
(1,1)
1
2
3
4
5
6
Concern for Production
7
8
9
(Burns,
2007)
The Managerial Grid
(1,9)
(9,9)
9
Concern for People
8
7
6
(5,5)
Task Management
5
Efficiency in operations results in
the accomplishment of work in
Such a way that there is minimum
Interfere of human elements
4
3
2
1
(9,1)
(1,1)
1
2
3
4
5
6
Concern for Production
7
8
9
(Burns,
2007)
Middle of theGrid
road Management
The Managerial
Adequate organizational performance
Is possible through balancing the necessity
to get out work with
maintaining morale of the people
At a satisfactory level
(1,9)
9
Concern for People
8
7
(9,9)
6
5
(5,5)
4
3
2
1
(9,1)
(1,1)
1
2
3
4
5
6
Concern for Production
7
8
9
(Burns,
2007)
The Managerial
CountryGrid
Club Management
Thought full attention to needs
of people for satisfying
relationship leads to a
comfortable friendly
organizational atmosphere &
work tempo
(1,9)
9
Concern for People
8
7
6
5
(9,9)
(5,5)
4
3
2
1
(9,1)
(1,1)
1
2
3
4
5
6
Concern for Production
7
8
9
(Burns,
2007)
The Managerial Grid
Team Management
(1,9)
9
Work accomplished is from
committed people,
Interdependence through
common stake in organizational
purpose leads to relationship
of trust and respect
8
Concern for People
(9,9)
7
6
5
(5,5)
4
3
2
1
(9,1)
(1,1)
1
2
3
4
5
6
Concern for Production
7
8
9
(Burns,
2007)
Leader and Group
High
Group
autonomy in
decisionmaking
Low
Participativ
e
Paternalisti
c
Low
Consultativ
e
Autocratic
High
Leader
Authority
(Burns,
2007)
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
(Burns,
2007)
Strategic Planning Process
Vision
Strategic Analysis
•The organization( strengths and
Weaknesses)
•The environment (opportunities and
Threats)
Feedback
Loops
Strategy Formulation
•Identify Strategic Options
•Evaluate options
•Select Strategy
Strategy Implementation
•Leading and Managing Change
•Organization Structure and Culture
•Planning and Allocating Resources
(Burns,
2007)
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.
(Burns,
2007)
Remember
“Management is doing things right;
Leadership is doing the right things”
Peter F. Drucker