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The Rise of Entrepreneurial Leadership and its Significant Impact on Business Performance

“Entrepreneurial leadership is a style of leadership that combines innovation, strategic vision, and a proactive approach to drive business growth and achieve long-term success”

The World has Changed

The business landscape is undergoing unprecedented transformations in today’s fast-paced and interconnected world. These changes, driven by various factors such as technological advancements, globalisation, evolving consumer preferences, and environmental concerns, are reshaping how businesses operate, engage with customers, and position themselves for future success.

It involves leading an organization or team with an entrepreneurial mindset, focusing on opportunity identification, risk-taking, and creating value.

The Reasons for Leadership Style Change

In the new world, leadership styles and models that we have learned and known from the past are no longer as impactful, with 70% of HR and functional heads saying that it is time for leaders to transform (Global Leadership Development study, 2024). Another important statistic for leadership transformation is that 82% of the workforce report burnout, and more than 60% of leaders say “they are used up at the end of the day,” which is a strong indicator of burnout (Forbes, 2024).

The Rise of the Entrepreneurial Leadership

The “speed dynamic” coupled with the need for innovation is creating a new type of leader  – “The Entrepreneurial Leader”

Added to the challenges of a gap in Leadership skills –  is the fast-paced competitive landscape, where technology, AI, customer need for instant gratification, and challenging trading conditions are the order of the day. It is no longer about discussions on situational and transformational leadership, today, it is about leaders who have the entrepreneurial spirit to scan the landscape ahead and make innovative decisions to keep their businesses ahead. While doing that, they need to inspire their team fearlessly towards one purpose.

Academics and writers call it “Entrepreneurial Leadership”.

(Source, Mickensy research, Women in the workplace 2023)

“organizing a group of people to achieve a common goal using proactive entrepreneurial skills and behaviors is no longer as impactful novating to take advantage of opportunities, optimising risk, taking personal responsibility, and managing change within a dynamic environment for the benefit of the organisation” – Roebuck.

Characteristics of Entrepreneurial Leadership

  1. Visionary Thinking: Entrepreneurial leaders have a clear vision of where they want to take the business. They set long-term goals and inspire others to work towards a shared future.
  2. Innovation and Creativity: They encourage and foster a culture of innovation where new ideas are welcomed and explored. Entrepreneurial leaders are willing to challenge the status quo and find creative solutions to problems.
  3. Risk-Taking: Such leaders are comfortable with taking calculated risks. They understand that failure is often a part of the innovation process and are prepared to learn from setbacks to move forward.
  4. Adaptability: Entrepreneurial leaders are flexible and can adapt quickly to changing circumstances and market dynamics. They are open to pivoting strategies when needed to capitalize on new opportunities.
  5. Decisiveness: They can make timely decisions, often with limited information. This decisiveness helps keep the organization agile and responsive.
  6. Empowerment and Team Building: Entrepreneurial leaders empower their team members by delegating responsibilities and encouraging independence. They build strong, diverse teams that collaborate effectively and share in the company’s vision.
  7. Customer Focus: They keep the customer at the center of their business strategies. Understanding customer needs and creating value for them is a primary focus.
  8. Networking and Collaboration: Entrepreneurial leaders often leverage networks to build partnerships, gather insights, and access resources. They understand the value of collaboration and actively seek opportunities to connect with others in their industry.
  9. Resilience and Perseverance: They demonstrate resilience in the face of challenges and are persistent in pursuing goals despite obstacles and setbacks.
  10. Lifelong Learning: Entrepreneurial leaders are committed to continuous learning and personal development. They seek new knowledge and experiences that can enhance their ability to lead and grow their business.

 

By embodying these characteristics, entrepreneurial leaders can drive innovation, inspire their teams, and successfully navigate the complexities of the business world. They play a crucial role in fostering growth and sustaining competitive advantage in dynamic environments.

Reflection for leaders:

Assess yourself against the Entrepreneurial characteristics. Reflect on your score. Write down how you will behave differently to achieve any gaps that you may have highlighted.

A Final point

“The ones who are crazy enough to think that they can change the world are the ones who do” – Steve Jobs.

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A Lesson in Leadership – The Power of Reflection

The power of reflection is often underestimated. We are often taught that great learning only takes place when you read, and listen to experts, attend webinars training programs. It is true and you must use these tools to sharpen your craft in whatever it may be.

The best learning takes place with reflection. Take time to reflect on an experience, action, emotion, or behavior and play out what worked, did not, and what you can do differently. I power my thoughts to create the awareness that creates the change.

Absolutely agree it’s not easy. But as they say “Repetition and consistency create a habit, that creates mastery” – try it

1. Communication and Influence

Do you want the power to influence people?

We all know that we are living in a time of disruption and change where the demands and stress felt by most are greater than it’s ever been. To get people to believe and follow you with fanatical discipline and excellence you have to inspire belief before action.
Having the power to influence and mobilise people to work and walk with you is so simple and yet we don’t do it.

We say “this is what we need to do, how we need to do this when it needs to be done? We talk about what, how, and when, and yes the urgency. We get this reaction.

Let me tell you about the power of why? If you want your people to follow you, to be with you as a leader, and do business
with you as an entrepreneur then tell them why?
Here are 3 things that you should be doing to get this power.

1. Know your why? Why are you in this business, why did you choose these products,
services, and industries? Why this career?
Why this change and how it links to the why of the business.

2. Share your why first before you ask for action. The why tells them that they are contributing to something greater than themselves. It inspires belief and energy. The why is the great cause that they want to be part of. It has meaning and people feel fulfilled when they do something meaningful.

3. Connect with people from the heart and then the mind.

We know that we are in times when people are seeking to connect. They want to be included. They want to know what’s in it for them before they decide to partner with you and make a decision to act. Why connects the heart?

Starbucks talks about their “why” ….

To inspire and nurture the human spirit – one person, one cup, and one neighbourhood at a time.

It feels like a home away from home. The entire taste, smell and aesthetics centered on the human spirit where people felt cared for.

Dunkin Doughnuts their competitor talks about their “what and how” make and serve the freshest, most delicious coffee and donuts quickly and courteously.

The moment you tell someone “why” you create an emotional connection with them, your brand, and your products and service.

Try it and let me know how it goes.

2. Leadership in the new era of change and disruption

a. Focus on results and not effort.

According to a Gallop survey, the number 1 stress experienced by organizations today is “having to do more with less”. I submit that added to this stress and even more challenging is having to do more with less, do it fast and do it with excellence”.

The pace, the need to adapt to changes quickly, and being agile means Competition is stronger, change is constant and headwinds are more aggressive.

Four (4) key things you need to focus on to create success and impact in your changing world and be future-ready.

a. Clear, defined purpose and vision that is consistently communicated. This not only enrolls the hearts and creates clarity of the why but allows mindset shifts through awareness and understanding of the end goal.

b. Clear roles, responsibilities, and KPIs for individuals and teams. When people know what they need to do, what the outcomes are, and how their activities contribute to the greater purpose they are present, involved, and deliver on their work to deliver
outcomes.

c. Performance feedback for results and impact. This is a proven behavioral concept.
When you give people feedback and let them know what they are doing well and how they need to do things differently to succeed they know what to focus on.

d. Constant and consistent communication to embed behavior change for the
successful delivery of outcomes.

Don’t take these actions and behaviors for granted and assume that they are implemented and it is happening. You have to create “behaviour change” by embedding fanatic discipline and wiring in processes and practices. This must become a way of work to become a way of life in organisations.
Do your assessment and be the judge of where you are with regard to these key focus areas that is needed for your success.

3. Amazing women (international womens day)

I have met the most amazing women in the last year – women whom I have learned from. Women who have grown and supported me. Women who have inspired me. Don’t put boundaries and barriers on connecting with people. You are gifted with their talents, knowledge, and wisdom and you are able to gift them with yours – creating an immense movement of sisterhood – investing and growing each other.
To all the female entrepreneurs, leaders, friends, colleagues, and sisters I salute you for your courage and brutally optimistic spirit.

4. Self development

How to change your behavior for personal and leadership growth

So with the intense trading conditions, high competition and challenging social economic, and consumer climate, we know that more than 95% of organizations are exposed to change and transformation to remain sustainable.

Studies have shown ( Mckinsey Report 2017, 2021) that less than 20% of companies see results and impact from leadership training and development. Only 7% of CEOS believe that they are building global leaders whilst research continues to indicate that only 10% of executives believe that the development has a clear business impact. Leadership development is in Industry worth more than 50 billion dollars but has shown disappointing results.

We looked at what’s missing – what do we need to do differently to create change and impact?

In our work which includes more than 10 000 pieces of data, research, observation, experts and behavioral scientists; commentary and findings, and case studies we were able to experience and see 6 key principles that created behavior change

1. Lead yourself before leading others.

Leaders ourselves feel overwhelmed and stressed and in that mode, we downward spiral and cannot think clearly of solutions or be
motivated for success.

2. Self-transformation is key to changing behavior and actions.
a. Work on controlling your thoughts, mindset, and beliefs, and your behavior will change. How we think is how we act. Behaviour creates action and attitude for success.

3. Reward and Social incentives.

4. Discipline, consistency, to wire in thoughts behaviors, and creating a habit.

5. Translate the strategy into leadership behaviors that are critical to the environment and then build leaders’ capability for strategic success.

6. Continuous learning and reflection. This can be achieved through mentorship and bite-size learning programs that ensures self-awareness and learning by doing.

5. Success Chasers

Key principles that will help you achieve your success in change and crisis.

1. Believe in your idea and try different things to make that idea a reality.

2. Thinking and doing. You must do both. Find time to think, design and be creative. But take action to make it happen.

3. Act fast and get it done.

4. The hardest thing to manage in a crisis is your own psychology. “Optimism is rooted in truth” Be authentic but be brave and courageous to know you can do it.

5. Be Decisive

6. Make principal decisions rather than only business decisions.

7. Be in the detail. Leaders must be involved. All hands on deck.

8. Live with the strategy – make it a part of your daily life.

9. Remove boundaries, department silos, and bureaucracies. Work as a team focused on the
end goal.

10. Build relationships. Give priority to the uncomfortable ones and make it work.

6. Why you need to Recruit for culture fit

Cultural fit is the intangibles that define the leadership, team, and work styles. If the candidate has the experience and expertise but their values and priorities are note aligned to the organization then that employee will struggle in that environment making it very difficult for his potential to be unleashed and ultimately making it a very costly exercise for the company.

3 reasons why you should hire for culture fit:
1. Motivates employees and inspires productivity – employee feels like they belong and are enrolled in the values and aspirations of the organisation.

2. Saves money and time – you can coach for skills enhancement when the employee is willing and excited to fit in and learn and grow.

3. Creates a collaborative work environment as expectations and values are aligned.

7. An Entrepreneur is a Salesperson

a. An entrepreneur is a visionary – has ideas and takes action to implement them.

b. Risks do not have to be costly. Create a focus group and test ideas for demand. Invest time and energy if there is a demand.

c. An entrepreneur must create an environment to inspire performance and commitment. Your energy, the people you are with, what you
learn daily and engaging people and the mind.

8. Recruitment – International Women’s day

“Lets forge a more inclusive world for women” through your recruitment strategy

If I had to ask the question

Are you as a leader or organisation intentional about ensuring your recruitment strategy is targeted at employing women? That It is not a tick-box exercise for BEE scorecards but authentically appoints women in key and critical roles. You then go one step further and create an environment for them to grow and flourish in?

What would your answer be?

(Source, Mickensy research, Women in the workplace 2023)

The picture paints a gloomy picture and tells us we are not bold enough to “inspire diversity”.

All research indicates that women are more transformational leaders than men. Their levels of creativity and empathy and ability to harness the employee experience is a winning formulae.

The question then is why is there so few women in senior roles.

The answer:
We must have the courage to question the perceptions and barriers that exist and
then we must have the courage to act on them.

2 steps
1. The first step is to create a recruiting strategy that intentionally seeks out the best women for the role that you will hire and appoint into your business. If it’s not intentional then it will not happen. Look for talent instead of only experience. Talented women who you can unleash the skill and through development and support help create their success.

2. The second step is to create an environment for them to flourish in.