Chapter 1 Characteristics of successful entrepreneurs and leadership styles

advantage of autocratic managers

1. Control 2. Easy to learn

Advantage of democratic mangers

1. Good business fit 2. Build strong teams

What is an entrepreneur?

Entrepreneur is defined as someone who organizes a business venture and is responsible for the risks involved.

What is a social Entrepreneur?

Entrepreneur who uses their entrepreneurial skills to achieve benefits for society. Main aim is to further social and environmental goals.

What is an entrepreneurial characteristic

Is the personal skill

What is leadership?

Leadership is one of the key skills involved in running a successful business

Democratic mangers

Listen to other people's ideas and opinions before reaching a decision. A two way system of communication

Autocratic managers

Make all the decisions; they give orders without consulting anyone else

What is the entrepreneurial motive

Something that drives the person

Paternalistic managers

They think they know best and although there is some consultation, ultimately the manager takes responsibility and decides what happens

Theory x managers

Think that workforce dislikes work and needs direction and control

Theory Y managers

Think the opposite; the workforce is capable of enjoying work and can be trusted to get on with things without close supervision

What characteristics are needed for a successful entrepreneur?

1. Hard work - without hard work they are unlikely to succeed. 2. risk taking - Must be prepared to take risks 3. Initiative - Entrepreneurs need to be able to come up with good ideas to create and maintain a competitive advantage

Disadvantage of paternalistic managers

1. If wrong decision made employees will become dissatisfied 2. Team becomes competitive

Disadvantage of autocratic managers

1. Increased work burden 2. Leader dependence

Advantage of paternalistic managers

1. Manager involves employees 2. Provides feedback

What motivates entrepreneurs?

1. Profit as this is the main reason as you as a business v want to make money b and improve your lifestyle and secure a good standard of living for you and your family 2. Independence being your own boss is a strong motivating factor as your decisions will determine the success of your business 3. Making things happen the ability to get things moving, to create and achieve deals is a motivating factor

Disadvantage of democratic managers

1. Time consuming 2. Become apologetic