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Assignment #1: Entrepreneurial Leadership

October 21, 2010

Common Elements Described in the Theories/Philosophies of Case, Kouzes, and Drucker Related to the New Definition of Entrepreneurial eadership

Leadership is usually defined as a one of the most important components for the success of a company. here !as three main points to identify a leader: ha"ing people to lead, ha"ing certain s#ills to reach company$s ob%ecti"es, being focused on accomplishing goals. &o!adays in a dynamic high competiti"e mar#ets understanding leadership is "ery critical for a business. 'ompany cannot be inno"ati"e and competiti"e !ithout understanding of an importance of leadership. he pace and nature of change in today$s dynamic mar#et re(uires ne! types of

organi)ations and a ne! type of leadership * entrepreneurial + arabishy, ,olomon - .ernald, 2002/. he entrepreneurial leadership is one of an enterprising, transformational leader !ho

operates in a dynamic mar#et that offers lucrati"e opportunities. According to ,ash#in +1001/, the entrepreneurial leader has the follo!ing transformational leader dimensions: clarity, communication, consistency, caring, creating opportunities, self2confidence, po!er need and its use, and "ision. 3esides all of these, the entrepreneur part of entrepreneurial leadership is the ability to recogni)e opportunities in a dynamic mar#et and 4the ability to build, share, and le"erage #no!ledge5 that 4!ill replace the o!nership and6or control of assets as a primary source of competiti"e ad"antage +7reland and 8itt, 1000/.5 Analysis of the theories6philosophies presented by 'ase, 9ou)es, and :ruc#er contain at least fi"e or si; inherent elements of the entrepreneurial leadership in common. E"en though they ha"e their o!n principles in order to enlighten the definition of the entrepreneurial leadership, these are a #ey points they all agree !ith: ookin! forward and be"ond

All of the three theories agree that the entrepreneurial leader al!ays has to try ne! things, loo# for ne! opportunities, and analy)e it in order to be inno"ati"e. <upta and =acmillan +2002/ defined entrepreneurial leadership as leadership that creates "isionary scenarios, moti"ating and committing a cast of characters for the disco"ery and e;ploitation of strategic "alue creation in an organi)ational setting. Risk takin!, probabilit" anal"sis 3eing the entrepreneurial leader re(uires assumption of necessary ris#s and !illingness to ta#e it. he entrepreneurial leader has to differentiate and prioriti)e the main ris#s. >robability of the ris# to occur "s. the cost of the ris# has been al!ays ta#en in consideration in decision ma#ing processes. #dentif"in! and e$aluatin! the opportunit" :ifferent philosophies tal# about the opportunity searching using different terms. 3ut the bottom line is, it is critical for the entrepreneurial leader to find, understand, and use the e;istent opportunity. a#ing or not an ad"antage of the e;isted opportunity is in a "ery tight connection !ith ris# analysis and a le"el of self2confidence. 7n dynamic mar#ets, the entrepreneurial leaders are re(uired to recogni)e opportunities and understand !hether to e;plore them or not. Control and mana!e of resources urning resources to practical account and finding !ays to get more from fe!er resources is one of the #ey elements describing the entrepreneurial leader. 7n order to achie"e a desirable le"el of performance the entrepreneurial leader has to understand ho! to obtain, combine, and organi)e resources. People are the prime dri$er of opportunit" searchin!

7t is essential for the entrepreneurial leader that people is the most important resource to manage and the most effecti"e to use. .ocusing on people, #no!ing the !ays to moti"ate, inspire, and enabling people to act is !hat brings the leader to a ne! dynamic mar#et le"el. Passionate and de$otion he entrepreneurial leader is to be passionate about !hat he6she is doing. E"ery process has to be challenging !ith a de"otion of time and effort. %ein! inno$ati$e in order to compete All researches in entrepreneurship "ie! entrepreneurs as inno"ators. And this is the only !ay to face increased competiti"eness. 7nno"ation no!adays aimed at obtaining dominance in a mar#et.

&" eadership 't"le or 't"le # (spire to %e A part of the leadership style of a person is something the person !as born !ith and the other part is formed by multiple factors, such as: society, e;perience, !or#ing en"ironment, and cultural differences. a#ing all of these factors in consideration, my leadership style can be described as a combination of a charismatic and a transactional leaderships. he charismatic part is gi"en to me and it is only modifying !ith e;perience 7$m gaining. As for the charismatic leader, generating e;citement and increasing the e;pectations of follo!ers is !hat helps me to manage and lead people. 3ut !or#ing e;perience pro"es that charisma is something people can learn and successfully use. 7t is also distributed throughout the company. hese factors plus cultural and sociological aspects tended my style to!ard the transactional leadership. 'reating a clear structure of a tas# that needs to be done al!ays tied together !ith re!ards or punishments.

&o!adays, learning more from !or#ing place and global mar#et, there is an understanding of a need to be more of the transformation and the entrepreneurial leader. 7t is critical to use leadership po!er in a !ay that ma#es people depend less on the leader. Arising moti"ation and a sense of importance in follo!ers plays an important role in leadership. 3esides, the high competition and mar#et perspecti"e ma#e me aspire after entrepreneurial leadership.

Resources and Tools ($ailable Throu!h the 'mall %usiness (dministration and 'C)RE .irst of all, ,'O?E and @.,. ,mall 3usiness Administration +@.,. ,3A/ pro"ide an entrepreneur !ith a big "ariety of "aluable and uni(ue to small business information. 3asic and general information, la!s and regulations, statistics and researches are a"ailable to use in order to learn more and be a successful entrepreneur. 7nformation presented and topics discussed ma#e a process of opportunity searching much easier and less time and cost consuming. =oreo"er it has a li"e chat, blogs, and online ad"ising system, that helps to find an ans!er or sol"e a problem. Aor#shop attendance !ould be "ery helpful in understanding of a different field or business aspect. Online trainings are "ery critical in terms of managing time. @.,. ,3A and ,'O?E pro"ide resources and tools that help ne! entrepreneur to launch a start2 up, to #eep the business profitable and successful.

Personal principles of leadership 7f 7 !ere to create my personal principles of leadership, they !ould be: * eam concentratedB

7t is important for a leader to ha"e a !ay of thin#ing concentrated on a team playing. he leader a priori has follo!ers or people to lead. ogether they are a team that has to ha"e a certain %ob done. * ,elf understandingB 7 !ould pay attention on that mostly because the understanding of the !ay the person as the leader thin#s +by him6her2 self/ opens an opportunity to understand and successfully use the !ay the other people thin# and beha"e. 7f the leader absolutely self2confident it automatically ma#es people belie"e in his6her ideas, respect the leader, and follo! in e"ery direction.

References <upta C. - 7'. =ac=illan +2002/. Entrepreneurial leadership: :e"eloping a cross2cultural construct, Proceedings from the Academy of Management Science, Denver Colorado. 7reland, ?.:. - =. A. 8itt. +1000/. Achie"ing and maintaining strategic competiti"eness in the 21st century: he role of strategic leadership. Academy of Management Executive, 13 1!, DE21F. ,ash#in, =. +1001/. ransformational leadership: A re"ie! and synthesis. Aor#ing paper E1E201, "nstitute for the Study of #earning, he <eorge Aashington @ni"ersity. arabishy A., ,olomon <. . - .ernald L.A.Gr +2002/. @nderstanding Entrepreneurial Leadership in todayHs :ynamic =ar#ets, School of $usiness and Pu%lic Management, De&artment of Management Science, he <eorge Aashington @ni"ersity.