ENTREPRENEURSHIP AND LEADERSHIP

Entrepreneurship and Leadership



Entrepreneurship and Leadership

Introduction

Leadership is wielding influence over others with the purpose of achieving a common goal. Any business needs leaders in order to be successful. A leader who understands the challenges of the rapidly changing business environment leads his company to success. The leadership style adopted by an entrepreneur impacts the organizational development and performance (Fernald, et al., 2005).

With the world having changed into an entrepreneurial economy, new business are increasingly coming up, which turn out to be successful by focusing on an untapped market niche. Entrepreneurship is encouraged for the purpose that it leads to economic development (Tarabishy, et al., 2005).

Discussion

Entrepreneurial organizations have a different structure than the traditional organizations and differing ethical and social responsibilities. Thus, they have a completely different organizational climate. Entrepreneurships have a greater resource scarcity and face more threats in business environments (Jones & Crompton, 2009). Therefore, a lot of new entrepreneurial ventures are profit maximization oriented. The lack of a strict formal structure emphasizes on the leader's abilities to take decisions that would result in business effectiveness (Darling & Beebe, 2007).

Thus, in the initial stages the entrepreneurs keep their business model purely profit-oriented in order to survive. Driven by innovation and high risk-reward tradeoff, most entrepreneurs are typified as autonomous, inventive, and aggressive leaders with the aim of profit maximization.

Profit Oriented Entrepreneurship

Profit oriented entrepreneurship leads to success in today's dynamic business markets. This type of entrepreneurship is undertaken for monetary gains. Though, that does not mean that these businesses are devoid of corporate social responsibility. Entrepreneurship based on profit-orientation creates an economic value, which is the prime concern of this entrepreneurship.

Steve Jobs established one of the most successful business ventures ever that is Apple Inc, which beat Microsoft. His leadership ability is undeniable. He took a basic idea and turned it around into one of the most sought after products line. This became possible through his dynamic charismatic leadership. Through charisma, he influenced and controlled people, along with commanding their respect, on top (Erve, 2005).

Jobs had a great motivational power, which he capitalized on for inspiring his employees towards achieving excellence. He had a remarkable inclination for organizational development. He was a paradigm for his employees because of his passion for learning and development and relentless innovation.

He established a business model where growth and progression was highly encouraged. He believed in growth and development of his employees as essentials for business success. Furthermore, Steve Jobs was a visionary leader who knew what strategic course to take Apple on, to ensure its unremitting success (Erve, 2005).

Jobs initiated a niche-nurturing business. He was the driving force behind Apple's development through his innovative product ideas. He led his employees by setting an example of perseverance himself and fostered a work environment where creative people could flourish.

Steve Jobs had an inspiring personality, which made it easier for him to execute his directive style. He stimulated self-confidence and conviction in his employees to enable them to deal with business' every need ...