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)
 Management vs.
Creating an Planning Leadership
and budgeting, Establishing direction,
agenda establishing detailed steps and developing a vision of the future,
timetables for achieving needed often the distant future and
results and allocating resources strategies for producing the
accordingly changes needed to achieve vision
Developing a Organizing and staffing, Aligning people, communicating
human establishing some structure for the directions and accept their
network for accomplishing plan validity
achieving the requirements, staffing,
agenda delegating responsibilities,
providing policies, and creating
monitoring systems
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 Producing change, often to
predictability and order, dramatic degree, potential to
consistent production of produce extremely useful change
expected results (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 Matrix Structure

Structure

(Burns,
2007)
 Churchil and Lewis Growth Model

Disengagement Growth

Existence Success Maturity

Survival 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
8
7
Concern for People

6
5 Impoverished
(5,5) Management
4 Exertion of minimum effort to get
3 required work done is appropriate
2 to sustain organizational
membership
1
(1,1) (9,1)

1 2 3 4 5 6 7 8 9
Concern for Production (Burns,
2007)
 The Managerial Grid
(1,9) (9,9)
9
8
7
Concern for People

6
5 Task Management
(5,5)
4 Efficiency in operations results in
3 the accomplishment of work in
2 Such a way that there is minimum
Interfere of human elements
1
(1,1) (9,1)

1 2 3 4 5 6 7 8 9
Concern for Production (Burns,
2007)
 The Managerial
Middle of theGrid road Management
Adequate organizational performance
(1,9) Is possible through balancing the necessity (9,9)
9 to get out work with
8 maintaining morale of the people
At a satisfactory level
7
Concern for People

6
5 (5,5)
4
3
2
1
(1,1) (9,1)

1 2 3 4 5 6 7 8 9
Concern for Production (Burns,
2007)
 The Managerial
CountryGrid
Club Management
(1,9) Thought full attention to needs (9,9)
9 of people for satisfying
8 relationship leads to a
7
comfortable friendly
Concern for People

organizational atmosphere &

6
work tempo
5 (5,5)
4
3
2
1
(1,1) (9,1)

1 2 3 4 5 6 7 8 9
Concern for Production (Burns,
2007)
 The Managerial Grid
(1,9) Team Management (9,9)
9 Work accomplished is from
8 committed people,
Interdependence through
7
Concern for People

common stake in organizational

6 purpose leads to relationship
of trust and respect
5 (5,5)
4
3
2
1
(1,1) (9,1)

1 2 3 4 5 6 7 8 9
Concern for Production (Burns,
2007)
 Leader and Group

High
Participativ Consultativ
e e
Group
autonomy in
decision- Paternalisti
making Autocratic
Low c

Low 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 (Burns,
• Planning and Allocating Resources 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
(Burns,
 Emphasis on future and sense of urgency. 2007)
 Remember

“Management is doing things right;

Leadership is doing the right things”

Peter F. Drucker