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