ENTREPRENEURIAL LEADERSHIP IN AN ORGANIZATION

IMAGES OF ENTREPRENEURIAL
LEADERSHIP
Leadership Competencies,
Characteristics, and Motives
 The Concepts of Entrepreneurship
• There has been widespread recognition that
entrepreneurship is the engine that drives the economy of
most nations (Karmara et.al, 2014).

• Entrepreneurship is the process of creating something new

with value by devoting the necessary time and effort;
assuming the accompanying financial, psychic, and social
risk and uncertainties; and the resulting rewards of
monetary and personal satisfaction.

• Entrepreneurship can be learned but it is not for everybody

because passion is the key in undertaking this economic
endeavor .
 Who is an Entrepreneur?
• A person who sees a need in the marketplace and sets out to fill that need
with a product or service.

• The who organizes and manages an enterprise, especially a business,

usually with considerable initiative and risk.

• A person who seeks a profitable opportunity and takes the necessary risks
to set up and operate a business.

• An entrepreneur is considered a leader that has a high entrepreneurial

competency to handle and manage adversity.

• Considered also as a manager but possesses leadership roles: ‘single-

minded, thick-skinned, dominating individuals unlike managers’.
Conventional versus Entrepreneurial

Conventional Entrepreneurial
Management Manager

Part of Whole
Scope
organisation Organisation

Maintain Objectives Create

Status Quo Change

Conserve Pursue
Focus Opportunity
Resources
What is Entrepreneurial Competency?
• These are the skills necessary for an
entrepreneur to venture into an enterprise.

• A competency is any attitude, skill,, behavior,

motive, or other personal characteristics that
is essential for an entrepreneur to manage an
enterprise successfully.
The 10 Personal Entrepreneurial
Competencies (PECs)
 Who is an Entrepreneur?
• As pointed out by Derue, et.al (2011), an
entrepreneur’s leadership effectiveness refers
to the amount of influence a leader has on
individual or group performance followers’
satisfaction, and overall effectiveness.
 Entrepreneurial Leadership
• It is concerned with building up long-term
reciprocal relationships along the value chain of
an organization.

• Leadership effectiveness is determined by the

ability to influence others, set direction,
communicate, motivate, develop change, handle
resources strategically, and encourage others to
act in a competitively advantageous and
opportunity seeking way.
 Entrepreneurial Leadership
• entrepreneurial leadership involves organizing
and motivating a group of people to achieve a
common objective through innovation, risk
optimization, taking advantage of
opportunities, and managing the dynamic
organizational environment.
Historical Perspectives on EL
 Entrepreneurial Leadership
• An ‘entrepreneurial leader’ as the one who
has an apt ‘entrepreneurial’ approach and
precisely the ability to keep himself/herself
abreast with the fast changing situations or
markets, and to exploit opportunities to reap
advantage for the organization before and
faster than others.
 Common Entrepreneurial Leadership
Characteristics
Communication skills
• The leader is able to clearly articulate their
ideas, and the plan to achieve common goals.
Vision
• A successful entrepreneurial leader has a clear
vision. He knows exactly where he wants to go
and how to get there. They communicate their
vision to the team and work with them to
make the vision a reality.
 Common Entrepreneurial Leadership
Characteristics
Supportive
• An entrepreneurial leader realizes the
importance of initiative and reactiveness, and
they go out of their way to provide all the
support that the team needs to achieve their
goals.

Self-belief
• The leader has tremendous belief in themselves
and has confidence gained from years of
experimenting, at times failing, and learning.
 Common Entrepreneurial Leadership
Characteristics
Shares success
• When the team or the organization succeeds at something,
the leader does not hog the limelight or take all the credit.
They acknowledge the contribution of others and shares
the accolades with them.

Involved
• You will not find an entrepreneurial leader cooped up in the
office. Leaders like to spend time among employees, walk
around the factory or department, interact with everyone,
and see them doing their job. This leader will usually take
some time out to informally chat with employees, and
understand their work and personal challenges
 Common Entrepreneurial Leadership
Characteristics
Create an atmosphere conducive to growth
• With a deep understanding of the importance of other
people’s contribution to organizational success, the
entrepreneurial leader creates an atmosphere that
encourages everyone to share ideas, grow, and thrive.

Honesty
• Honesty is the most important quality of an exceptional
leader. Entrepreneurial leaders who are honest are able to
quickly win the trust of their employees. People respect
leaders to come across as honest, and are more likely to
accept positive or negative feedback and also work harder.
 Common Entrepreneurial leadership
Characteristics
Perseverance
• When the going gets tough, the entrepreneurial leader
perseveres. True entrepreneurs simply don’t quit, they
keep going till they find what they’re looking for.

Learning
• The leader not only invests significantly in learning and
updating their knowledge, but they also create a
learning environment in the organization encouraging
others to improve their knowledge, widen their
experience, and tackle multiple challenges.
 Framework of Entrepreneurial
Motivation
• People certainly don’t work for money alone.
• Money is required not for its own sake, but
the sake of the needs of the person
fulfillment.
• David McClelland may be regarded as the
father of the study of entrepreneurial
motivation.
 Desire to do something  Government assistance
new and support
 Education background  Availability of raw
Business experience in material and labour

same or related line  Encouragement from
big business houses
 Promising demand for
the product
 Profit margins

Internal factor External factor

 Another Factors of Entrepreneurial
Motivation
• Entrepreneurial Ambition
• Compelling Reason
• Facilitating Factor
 Another Factors of Entrepreneurial
Motivation

Entrepreneurial Ambition
• To make money
• To continue family business
• To secure self-employment
• To gain social prestige
• To do something creative and valuable
 Another Factors of Entrepreneurial
Motivation
Compelling Reason
• Unemployment
• Dissatisfaction with job
• Make use of idle funds
• Revival of sick units started by father
• Make use of technical/professional skills
 Another Factors of Entrepreneurial
Motivation
Facilitating Factor
• Success stories of entrepreneurship
• Experience in same or other line of activation
• Previous employment in same or other line of
activation
 Entrepreneurial Performance and
Rewards
• Entrepreneurial performance may refer to
measure of business success.

• Reward may refer to the recompense financial

or psychic accruing to the entrepreneur.

• The convergence is attained when and where

the success of the venture itself is perceived
as a personal reward.
END OF DISCUSSION
 References
• https://yscouts.com/10-entrepreneurial-leadership-
characteristics/
• Kamarmar et. al (2014). Entrepreneurial Leadership Style(s): A
Taxonomic Review. Symbiosis Centre for Management
Studies, Annual Research Journal of Symbiosis Centre for
Management Studies, Vol. 2, Issue 1, March 2014, pp. 156–
189.