1.5.6 Moving From Entrepreneur To Leader Flashcards
Difficulties in developing from an entrepreneur to a leader
- sharing ownership and control
- trust
- lack of leadership qualities
- stress
Sharing ownership and control
As businesses grow they need capital to fund expansion- may be necessary to invite new owners to contribute capital- may be difficult for them to give control to other parties
Trust
The entrepreneur may find it difficult to delegate and/or employ specialists as the business grows- may become suspicious of new senior staff and feel threatened if people know more than them
Lack of leadership quality
Just because someone has entrepreneurial qualities does not guarantee that they will be a good leader- may not have leadership skills e.g. communication, problem solving and decision making
Stress
May be very dependent of the success of the business- constant worry about what would happen if the business would fail- business may have to borrow money as well as bringing more staff to manage and responsibility and more likely to be conflict
overcoming these difficulties
- delegation and trust
- earn respect
- maturity and experience
- education
- reduce stress
overcoming difficulties- delegation and trust
a successful leader must be comfortable with delegation. delegating to experts and specialists = improve performance of business
overcoming difficulties- earn respect
a successful leader is respected by their stakeholders. if people treated well = more likely to be trustworthy, effective and flexible
overcoming difficulties- maturity and experience
a successful leader may need time to develop into a good leader
overcoming difficulties- education
some leadership skills can be learnt by attending specialist courses
overcoming difficulties- reduce stress
calm leaders are more likely to succeed than stressed leaders. reduce stress by doing exercise, eating a balanced diet, resting.
