Entrepreneurial Leadership Strayer University Contemporary Business Bus 508 Entrepreneurial Leadership Create a hybrid theory/philosophy which combines the common elements found in the thinking of Case, Kouzes, and Drucker. In your philosophy, be sure to include the new definition of entrepreneurial leadership presented in Understanding Entrepreneurial Leadership in today’s Dynamic Markets. People, passion, and perseverance are the “3 P’s” of the entrepreneurial philosophy of AOL’s former CEO and Chairman, Steve Case. Case, 2010) Model the way, inspire shared vision, challenge the process, enable others to act, and encourage the heart, are the five basic points James Kouzes offers that leaders use to motivate. (Kouzes, 2008) Peter Drucker says being the “Fustest with the Mostest” is when the entrepreneur aims at leadership, if not dominance, in a new market or new industry. (Drucker, 1985) Case believes that in a struggling economy it will take innovation and risk taking through entrepreneurship to get on track. Case, 2010) Case says that the right people alighned around the right priorities with an underlying passion, not just from the founder or CEO, throughout the people, that when times get tough, enevitably they do, the people will have the fortitude to see it through. (Case, 2010) Kouzes states that leaders need to set the example and practice what they preach, create forward looking goals, foster collaboration, and celebrate values. (Kouzes, 2008) Leadership has nothing to do with ones position in a company.
Being the “Fustest with the Mostest” is an entreprenuerial gamble, it carries a high risk, but can be greatly rewarding if successful. (Drucker, 1985) In this struggling economy the need for entrepreneurs is great while the opportunity for most is limited. Entrepreneurship starts with a vision to change society, a culture, the world, or just a single person’s life, with a product or service. Case, Kouzes, and Drucker, bring forth similar elements to entrepreneurial leadership. All leading to a philosophy of “variety entrepreneurship. The market place today is plaqued with everchanging technologies, and continuous growing new industries. Entrepreneurs have to be able to create markets, enter established markets, and change markets. By having an innovative attitude, existing knowledge, and creative mind, variety entrepreneurs will be able to do all. The new definition of entrepreneurial leadership is one of an enterprising, transformational leader who operates in a dynamic market that offers lucrative opportunities. (Tarabishy)
Describe what type of organization a transactional, transformational, and authentic leader would thrive in the most, as well as which type of leader would thrive the least. Explain your response using at least one (1) additional source. The transactional leadership style developed by Bernard M. Bass is based on the hypothesis that followers are motivated through a system of rewards and punishment. The transactional leader’s view of the leader versus follower relationship is one of quid pro quo, or this for that. (Bass, 1985) The transactional leader would thrive most in a sales environment.
Sales representatives at car dealerships are often motivated by the bonuses and commissions they receive for sales and discouraged by receiving no pay, when they lack sales. Transactional leaders would leastly thrive in organizations like a school system. James M. Burns first introduced the concept of transforming leadership in his descriptive research on political leaders. According to Burns, transforming leadership is a process in which “leaders and followers help each other to advance to a higher level of morale and motivation”. (Burns, 1978) The transforming approach creates significant change in the life of people and organizations.
It redesigns perceptions and values, and changes expectations and aspirations of employees. (Burns, 1978) Transformational leaders would thrive in an environment such as churches. Pastors, Reverends, Bishops, and Apostles would all be considered transformational leaders. They seek to change the lives of their followers. Transformational leaders would least strive in an environment such as sports agent. Such as in the movie Jerry Maguire, when Tom Cruise sought to become more personal with clients his ideals were rejected by his management.
Authentic leadership has been defined as, a pattern of leader behavior that draws upon and promotes both positive psychological capacities and a positive ethical climate, to foster greater self-awareness, an internalized moral perspective, balanced processing of information, and relational transparency on the part of leaders working with followers, fostering positive self-development. (Fred O. Walumbwa, 2008) Authentic leaders would thrive mostly in social work organizations. Social workers often work for the greater good and seek the best solution for their clients.
Authentic leaders would not thrive in environments like law firms. Often times in the field of law a positive ethical climate is non-existent. Evaluate the resources and tools available through the Small Business Administration and SCORE, and determine which single resource or tool is most useful to the greatest number of businesses. Explain your rationale. The Small Business Administration has a loans and grants link that allows for potential small business to search for lenders in their area. It also assists with identifying grants that a potential entrepreneur would likely qualify for.
In starting a business, especially in the current economic climate, having the resources or leads available to lead to funding a small business venture is essential and would benefit the greatest number of businesses. According to the New York Times, of the top ten reasons business fail number four and five have to do with financing. (Goltz, 2001) Create a list of leadership best practices that would apply to the greatest number of businesses (both small and large). Be sure to explain your reasoning Leaders leading the way, the CEOs and senior leadership teams have to be committed and involved.
They mentor and teach their subordinate leaders. Whether running a large multi-national corporation or a small business, there is a need to be responsible for developing the leaders within the organization. (Kloeber, 2010) Leaders have vision. Leaders have a strong sense of direction and a clear point of view. Unless the leader knows where he is going, people will be hesitant to follow. Leaders are always looking towards the future, plotting the course to new land, leaders are modern explorers, always seeking new lands and striving for distant shores. Ambler, 2011) Leaders face reality. Leaders have the courage to face reality as it is, not as they imagine it to be. Leaders who fail to face reality as it is, delude themselves, they make change impossible and are doomed to fail. Leaders who face reality adapt their strategy and tactics to reflect reality. Leaders embrace reality and use it as a catalyst to accelerate change. (Ambler, 2011) References Ambler, G. (2011, July 3). Leadership Manifesto. Retrieved July 15, 2011, from The Practice of Leadership: http://www. thepracticeofleadership. net/ Bass, B. M. (1985).
Leadership and Performance Beyond Expectation. New York: Free Press. Burns, J. M. (1978). Leadership. New York: Harper and Row. Case, S. (2010, February 24). People, Passion, Perseverance: You’ve Got Entrepreneurship. Standford’s Entrepreneurship Corner . Drucker, P. F. (1985, Winter). Entrepreneurial Strategies. California Management Review , 27 (2) , 9-25. Fred O. Walumbwa, B. J. (2008). Authentic Leadership: Development and Validation of Theory-Based Measure. Journal of Management , 34 (1), 89-126. Goltz, J. (2001, January 5 ). Top 10 Reasons Small Businesses Fail.
New York Times . Kloeber, L. (2010, April 15). How You Can Develop Leaders Like the Best Companies Do. Retrieved July 14, 2011, from Leader 101: http://www. leader101. com/? tag=leadership-best-practices Kouzes, J. (2008, July 3). Rising to the Leadership Challenge. (D. Summers, Interviewer) Tarabishy, A. (n. d. ). Understanding Entrepreneurial Leadership in today’s Dynamic Markets. Retrieved July 13, 2011, from United States Association for Small Business and Entrepreneurship: http://usasbe. org/knowledge/proceedings/proceedingsDocs/USASBE2003proceedings-21. pdf