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ECC 4 Module 2

The document discusses the growing role of entrepreneurial leadership. It defines entrepreneurial leadership as instilling confidence to think and act entrepreneurially for the benefit of stakeholders. Entrepreneurial leaders are required to navigate rapid changes. They must initiate new business models, pursue opportunities, and nurture intrapreneurship within their organizations. The document also discusses different leadership styles like participative, autocratic, and charismatic.

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Trixie Mendoza Torres
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585 views

ECC 4 Module 2

The document discusses the growing role of entrepreneurial leadership. It defines entrepreneurial leadership as instilling confidence to think and act entrepreneurially for the benefit of stakeholders. Entrepreneurial leaders are required to navigate rapid changes. They must initiate new business models, pursue opportunities, and nurture intrapreneurship within their organizations. The document also discusses different leadership styles like participative, autocratic, and charismatic.

Uploaded by

Trixie Mendoza Torres
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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LECTURE NOTES

LESSON 2: GROWING ROLE OF ENTREPRENEURIAL LEADERSHIP

Entrepreneurial leadership involves instilling the confidence to think, behave and act with
entrepreneurship in the interests of fully realizing the intended purpose of the organization to the
beneficial growth of all stakeholders involved.

In the new era of rapid changes and knowledge-based enterprises, managerial work
becomes increasingly a leadership tasks. In the increasingly turbulent and competitive
environment firms face today, a new type of “entrepreneurial leader” distinct from other
behavioral forms of managerial leadership is required.

 Three Action Roles of Entrepreneurial Leader

1. Initiate new business models and ideas

A business model is a company’s core strategy for profitability doing business.


Models generally include information like products or services the business plans to sell,
target markets, and any anticipated expenses. The two levers of a business model are
pricing and costs.

Businesses with Inspiring Business Models

 Airbnb
It is an online marketplace that enables people to list, find, and rent
accommodations for a processing fee. Their business model builds on the sharing
economy and on the strong belief that house owners are willing to rent out free
space to strangers.

 Alibaba
Alibaba Group is the largest (online) retail company in the world. Their business
model is that they have no inventory. Long-tail competitors like Amazon buy
merchandise and sell these to their customers by using their own infrastructure. The
company mainly relies on bringing together Chinese sellers with buyers around the
world. Their value relies on their software interface, not in the products.

 Wikipedia
This is a free Internet encyclopedia that helps to improve common knowledge. It
allows its users to edit almost any article accessible. It is the largest and most
popular general reference work on the Internet and is ranked among the ten most
popular websites.
Look for and pursue promising entrepreneurial opportunities
As an entrepreneurial leader, one has to keep his/her eyes open for new business
opportunities. Creative people are always on the quest for inspiration and new starting
points. They know that opportunities can be found anywhere. They can appear in a
surprising fact or can be hidden in something that you experience.
Sample innovations:

 Rob Law saw an opportunity observing travelling children and suitcases. He


combined the two and created Trunki, a ride-on hand luggage suitcase for kids.
This fresh new approach became a huge success. It sold over 1,3 million suitcases
in 62 countries.

 Bernard D. Sadow who saw a trolley stacked with suitcases driving by when he
got the idea of putting the wheels on the suitcase. The result is known. There are
barely any suitcases left without wheels.

 The latest invention in the field of suitcases is even more logical retrospectively.
A suitcase with a built-in scale. This way you’ll never be faced with an unpleasant
surprise when your suitcase is being weighed at the airport.

2. Create and nurture intrapreneurial initiative in an organization

The term Intrapreneurship refers to a system that allows an employee to act like
an entrepreneur within a company or other organization. Intrapreneurs are self-
motivated, proactive, and action-oriented people who take the initiative to pursue an
innovative product or service

An intrapreneurship creates an entrepreneurial environment by allowing


employees to use their entrepreneurial skills for the benefit of both the company and the
employee. It gives employees the freedom to experiment, as well as the potential for
growth within an organization.

It's important for entrepreneurial leaders to recognize these employees. By not


promoting intrapreneurship or recognizing employees who demonstrate an
intrapreneurial spirit can be detrimental to a brand or company. Employers who
encourage intrapreneurship stand to benefit because it leads to the success of the
department or the company as a whole.
STYLES OF LEADERSHIP

Leadership style refers to a leader’s behavior. It is the result of the philosophy,


personality, and experience of the leader.

1. Participative or Democratic Style

The democratic leadership style favors decision-making by the group. Such a


leader gives instructions after consulting the group. They can win the cooperation of their
group and can motivate them effectively and positively. The decisions of the democratic
leader are not unilateral as with the autocrat because they arise from the consultation
with the group members and participation by them.

Collaborative Leadership – is a management practice which is focused on


leadership skills across functional and organizational boundaries.

Cross-Cultural Leadership – attempts to understand how individuals of different


cultures interact with each other. Along these lines, it has developed as a way to
understand leaders who work in the newly globalized market. Today’s international
organizations require leaders who can adjust to different environments quickly and work
with partners and employees of other cultures. It cannot be assumed that a manager
who is successful in one country will be successful in another.

2. Autocratic or Authoritarian Style


Under the autocratic leadership style, all decision-making powers are centralized
in the leader, as with dictators.

Leaders do not entertain any suggestions or initiatives from subordinates. The


autocratic management has been successful as it provides strong motivation to the
manager. It permits quick decision-making, as only one person decides for the whole
group and keeps each decision to him/herself until he/she feels it needs to be shared
with the rest of the group.

3. Charismatic Authority

It is a concept of leadership developed by the German Sociologist Max Weber. It


involves a type of organization or a type of leadership in which authority is derived from
the charisma of a leader. Charisma is an ancient Greek term which generally referred to
a divinely-originating “gift” that demonstrated authority of God within the early leaders of
the Church.

Max Weber took this theological notion and generalized it, viewing it as
something that followers attribute.

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