Entrepreneurial Leadership - Coursework Example

Entrepreneurship Leadership Entrepreneurial leadership helps grow and cultivate our society. It involves instilling the confidence to take risks, initiative, responsibility and creativity. Case, Kouzes and Drucker recognized the importance and type of approach individuals need in pursuing entrepreneurial leadership. We will examine these three different theories/ philosophies and the highlighted components, which ultimately will formulate a new definition of entrepreneurial leadership. Additionally, entrepreneurs can access a wide pool of resources accessible via the website SCORE and Small Business Administration (SBA). Moreover, we will discuss the Small Business Administration, which provides useful information to entrepreneurs that are beneficial, especially to business persons just starting. Entrepreneurial Leadership Part 1- Hybrid theory/ philosophy combining Case, Kouzes, and Drucker Entrepreneurial leadership that was identified in the three principles was a very multifaceted approach and entrepreneurs who emulate this approach are motivated, innovative, risk takers, responsible for people and manipulate change to the advantage of their organization. Cases, Kouzes and Drucker similarly recount on the whole matter of entrepreneurial leadership. Case (2004), has an enormous propensity to embrace the future. Steve Case established an Internet company, which in due course was called America Online (AOL) in 1985. Case emphasized on utilizing human resource factors in gaining success and highlighted 3 important P’s; namely, people, passion and perseverance. Similarly James Kouzes, Dean’s Executive Professor of leadership, Leavey School of Business in Santa Clara University and co-author of book, The Leadership Challenge, emphasized on that first P in his broadcast, where all values and triumphs should be celebrated with the team behind the leader. This shows how greatly the leader values workers’ input and effort. Both theories focus on revolutionary leadership, one who motivates and inspires. Moreover, Peter Drucker, a lawyer and author of numerous books on management of the organizations, emphasized that leaders should focus on human resource strengths, which will compensate for the leader’s shortcomings. All three models share one very important strategy, and that is leaders must be equipped mentally to deal with dissuading comments and events. Case confirmed this, before he became the Chief Executive Officer and Chairman for AOL, he journeyed from a bankrupt company called Control Video Corporation in 1983 and then formed Quantum Computer Services later known as AOL. During this journey, he used the failures to form new opportunities and hence his success. Likewise, Kouzes (2007) emphasized in his book that “they don’t try to get everyone to be in accord on everything—this goal is unrealistic, perhaps even impossible.” Drucker mentioned that followers are not motivated by a lethargic leader and is more moved by one who is passionate, even in the middle of obstacles and disappointments. New Definition of Entrepreneurial Leadership According to Tarabishy and company, the new definition of entrepreneurial leadership involves an innovative and “transformational leader” who functions in an energetic environment, with endless ventures. Our marketplace today is recognized for changes in goals, finance, and organizational structure. For that reason, that leader must be firm, versatile and focused, in order to, take advantage of the marketplace. They went even further to identify Sashkin’s definition of transformational leadership. These elements include “clarity, communication, consistency, caring, creating opportunities, self-confidence, power need and its use, and vision.” Additionally, the definition expounded on transformational leaders adjusting to the “organizational culture,” comprising, “adaptation, how people deal with external forces and the need to change, goal achievement, the nature of organizational goals.” Part 2- Leadership Style Our society is budding at a fast rate and as a result leaders pay close attention to their relationship with employees. Transformational and transactional leadership styles are very popular in today’s civilization. This was verified through Homrig (2001), who states that “Both styles of leadership, transformational and transactional, have strong philosophical underpinnings and ethical components.” To evaluate this statement, a James MacGregor Burns (1978) in his book Leadership, made a distinction between ordinary transactional leaders, versus an extraordinary transformational leader, where transactional leaders pay attention more to his/ herself and reward subordinates with incentives for hard work and punish accordingly for failure to comply. All of this is in an effort to meet the goals of the organization. Conversely, transformational leaders stimulate positive change in subordinates by relating their individuality, personal and collective missions of the organization. Conversely, Authentic leaders guide subordinates in sincerity, integrity and openness, this involves being responsible for whatsoever outcomes arise. To say that one style is more dominant and revolutionary in companies today, would be a misrepresentation of the facts. All work in conjunction to produce an effective leader. A term of contract must have moral authenticity, transactional leaderships must show neutrality and equality when rewarding subordinates and the transformational leadership incorporates without favoritism all levels of the organization, in achieving the goals. Bass further indicated this “Chinese ethics emphasizes personal virtue and specifies proper conduct in family, kinship, and friendship relations as well as among social equals and between superiors and subordinates in socio-political organizations and institutions.” Part 3- Resources available for businesses Large and small businesses have access to online tools and resources on the SCORE and Small Business Administration website. The most resourceful one is the workshops geared towards building a business plan. A business plan plays numerous roles, here are the following: Demonstrates to entrepreneurs the feasibility of starting a business Demonstrate the tools needed to launch the business It will highlight the cost of starting It can open doors to funding agencies and individuals, for example, investors It will show the intended customers or audience It will give an overview of the possible competitors and how to win customer loyalty It will indicate how to reach out to more customers It highlights the possible obstacles It enables persons in charge and subordinates to have goals to work towards It makes clear the roles of each individual in the organization It identifies the shortcomings of the leader and business It identifies the strengths of the leader and business It will reveal the steps to take for growth of the business It will indicate when and how to complete a goal or numerous tasks It empowers and motivates the leader Many businesses have no form of direction or goal because they fall short in developing a business plan. Hence, all other important practices that comes into play; such as, coaching, team building and motivating will fail if there is no solid plan. Part 4- Best practices available for businesses small and large Small and large businesses must ensure their staff is highly motivated and involved in several activities, which contribute to the growth of the organization. Certain important words that they must emphasize on are coaching, team work, and being responsible for the outcomes of the organization. Coaching fosters initiative and independence, where the staff becomes more responsible for their actions and self-reliant, rather than depending on management to make every decision. This practice also opens the door for change, and hence old structures will easily be eliminated. Furthermore, this technique helps calm and help team to embrace change more easily. Coaching makes team members more trainable and difficulty of learning new techniques will be non-existent. Team work is also another necessary contributor because it sharpens the skills of staff and communication flows fluently. The leader can exhibit as many leadership styles, but without the team they are alone and opened to failure. Team work increases efficiency, this means more profit and sales for money making companies. For non-profit organizations, guaranteed improvement in service delivery. Responsibility is highly important because staff is aware of their tasks and adheres to the job description. They are aware of their boundaries and this helps staff in staying on right path. This also prevents staff from blaming the manager for failure in their job domain. References Case, S. (2010). Podcast: People, Passion and Perseverance. Retrieved from http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2363 Drucker, P. (1985). Entrepreneurial Strategies. California Management Review, No. 2. 9-25 Homrig, M. A. Colonel (2001). Transformational Leadership. Retrieved from http://leadership.au.af.mil/documents/homrig.htm Burns, James MacGregor. Leadership. N.Y.: Harper and Row, 1978. Kouzes, J. (2008). Rising to the Leadership Challenge. Podcast #: 08-27. Retrieved from http://www.amanet.org/training/podcasts/James-Kouzes-on-Rising-to-the-Leadership- Challenge-08-27.aspx Tarabishy, A, Fernald, Jr. L., & Solomon, G.T. Understanding Entrepreneurial Leadership in today’s Dynamic Markets. Washington, DC: The George Washington University (pp. 1-6). Read More