ENTREPRENEURSHIP, MANAGEMENT AND
LEADERSHIP
EN T R EP R EN E U R V S . I N T R E P R EN EU R
ENTREPREU NEU RAL QUAL ITIES:
• Passionate visionaries
• Creative thinkers
• Risk takers
• Good le ade rs
• Inte rnally motivate d
• Perseverance and commitme nt
• Opportunists – ide ntify opportunities
•
ENTREPRENEU RIAL SKILLS:
• Knowledge and skill to run a business successf ully
• Management skills – POLC
• Recognize their short c omings and outsource/delegate
•
PERSONAL ATTITUDES OF SUCCESSFUL ENTREPRENEURS:
• Results driven
• Formulation of a busi ness visi on that is flexi ble, realistic and relev ant
• Encourages teamw ork
• Strives f or achievement, improveme nt and is ambiti ous
• Influencing f ollowers through trust, motivation and respect, and i nstilli ng c onfi dence
• Possesses EQ (Emoti onal intelligence)
• Excellent communicati on and liste ning skills
• Self-motivation
• Follow-through
ENTREPRENEU R
Entre pre neur = the person who c ombi nes the three factors of producti on (capital, labour and raw
materials) i n order to start a new business ve nture. Sees an opportunity in the market, tak es a
risk of starting a new busine ss by investi ng th eir ow n capital in orde r to make a profit.
Types of entre preneurs:
Techno-entreprene ur – develop technology or use technology to grow their business
Social – e ntre pre neur – solve social problems in society, normally NGOs
Tourism- e ntre pre neur – ide ntifies gaps in th e tourism industry
Enviro/Ec o-e ntre pre neurs – solve environme ntal problems
Tender-pre neur – develops a business around a te nder they want to apply f or
INTREPRENEU R
Intrepre neurs h ave all the same qualities as Entreprene urs, with two differe nces:
1. They are more cauti ous, less likely to take RISKS that may inv olve personal assets or
income.
2. They often remain in a stable job, working f or an employe r
SASHTI NOTES 1
, Intrepre neurs are employees who work within a busi ness but use their skills and talents of
innovati on and leadership to improve their department or take the busi ness to new heights. The
origi nal entreprene ur can also be intreprene urial by i nnovati ng IN the business.
M AN AG E M EN T & L E A DER S H I P
Management involves, amongst others, the ac tivities of PLANNING, ORG ANISING, LEADING and
CONTROL. Leade rship is part of manageme nt.
The manager h as authority because of the position he was appointe d to, a le ade r h as f ollowers
because of his visi on, ex pertise and inspirati on of others. A manager sh ould also be a leade r in
the organizati on.
MANAGEMENT AND LEADERSHIP STYLES
• AUTOCRATIC – only the manage r makes decisions. Seldom allows for input from
subordinates. Crisis situations, to restore discipline, quick decision making. Demotiv ating
for employees ove r the long run.
• DEMOCRATIC/P ARTICIPATIVE – more inv olve ment f or subordinate s in decisi on-making
which will improve their buy-in to the decision. In a fully democratic environment the le ade r
and follower will have equal decision-maki ng powers. In a f ully participative environment
the team members or f ollowers will be i n f ull control and be able to make the final decision.
Disadv antage might be slower decisi on making because the manage r allows more
participati on.
• LAISSEZ FAIRE – Manage rs i nform workers WHAT must be achieved, but not HOW to
achieve the objectives. No interfere nce by the manage in the process of carryi ng out the
task. Nee ds a highly skilled and motivate d workforce.
• TRANSACTIONAL – based on give-and-take transactions/negotiati ons where the leader
offers something of value (e.g. Remuneration) to their followers in return f or their
services. People are motivate d through what they can get.
• TRANSFORMATIO NAL – Pe ople are motivate d through what they can achieve togethe r to
improve the company. Te amwork. Employees are enc ouraged to be cre ative and innov ative.
The transf ormational le ade r helps their followers to satisfy their higher order nee ds while
at the same time re aching the goals of the business. Ex pectati ons are shared in the group
rather than individual gain is followed. Also k nown as charismatic leaders.
• SITU ATIONAL APPROACH – different le ade rship styles f or differe nt situations.
MANAGEMENT TASKS
• PLANNING
o Gather all appropriate informati on, look at alternative opti ons, choose the best
possi ble plan of acti on. The plan sh ould be adaptable, re alistic, cost-effective and
clearly c ommunicate d so th at ex pectati ons are clear.
• ORGANISING
o Ensuring that all resources are av ailable to e xecute the plan. Re porting structures
are f ormalized. Tasks are allocate d to those responsi ble f or them. Accountability
still remains with the manager.
• LEADING
SASHTI NOTES 2
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