This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
Leadership is a critical issue in an organisation, state or nation because of the great task that is involved. There are lots of examples of different leadership responsibility and carrying out these responsibilities, it will enable us to categorize the leader as good or bad leaders. For example, the likes of Henry Ford, Adolf Hiller, Bill Clinton, Saddam Hussein, Anita Roddick etc. can be categorised as a leader in their leadership position, but either their leadership role has favour their followers or not is something that can be debated.
Weiss and Molinari (2008) have quoted a CEO from a global retail organization to have said:
"I've come to learn that our success as a company is a function of one fundamental variable- the quality of our leadership. When you think about it, differentiating ourselves from our major competitors is a big challenge! We sell the same products, we pretty much have the same technology as they do and we generally have the same number of retail outlets. In the end, it's the leaders in our organization who make the difference..."
Bad leadership could means that the leader doesn't take response for the safety or how the working environment occurs to the employees.
The financial crisis in 2007 was a huge problem in the global economy and many companies took it hard and many companies went bankrupt. This crisis can be attributed to leadership problem and that was the main reason some companies with good leadership competence survived. It's important to think more in a strategic manner, which many companies now have learned, to be more prepared if this sort of situation is appearing again.
One of the problem with some company is that the leadership isn't always defined, and employees and stakeholders of the company creates a strong opinion for themselves of what they want to do and, in worst cases, everybody is going in different directions.
Increment in number of failed organisations in the recent time as a result of leadership role is our concern in this research and there is need to explore the way to enhance the responsibility of a good leader.
Research questions and purpose:
1.2.1 Research questions:
How important is the entrepreneurial leadership from the aspect of its influence on the development of the company?
Our purpose is to study and do research on importance of the entrepreneurial leadership. Features of entrepreneurial leadership will be discussed in the case; we will see the strengths and weaknesses of having each feature and how much they influence the development of the company.
To study the importance of the entrepreneurial leadership, we are only narrowly focused on the characters which will be shared by the two types of people. Literatures about the entrepreneurship and leadership can be more easily found, however the newly developed notion of "entrepreneurial leadership" as among the different types of leaderships is a little bit hard to be found and studied.
2.0 Literature review
In this part, we are going to find theories about traits both of entrepreneurship and leadership, compare with these characters; we will also find some articles about the characters and importance of entrepreneurial leadership.
2.1.1 Definition of entrepreneurship
Entrepreneurship as a field of study has generated a lot of argument and disagreement in the process of finding a universal adoptable definition, but in this paper the definition of entrepreneurship according to Gupta, Macmillan and Surie (2004) will be used and they also quoted various scholars in different perspectives in defining entrepreneurship. Gupta et al (2004) have defined entrepreneurship has "a pursuit of self-interest (Smith, 1776), innovative combinations of available resources (Schumpeter, 1934), uncertainty and risk-bearing activities (Kets de Vries, 1977), risk-avoiding- or -minimizing behaviour (Smith and Miner, 1985), and proactive or opportunity-seeking behaviour (Stevenson, 1983)"
2.1.2 Aspects of entrepreneurship
Wickham (1998) distinguish entrepreneurs from the view of the human dimension. He defines it by: "the way in which they use leadership and power and their ability to motivate those around them" (Wickham, 1998, p. 367). Figure 1 is illustrating the dynamics of entrepreneurial control; leadership, power and motivation, and how they are interconnected. These three aspects are at the same time independent tools that are used together for the entrepreneur to control the venture and give it direction. The aspects are the main concepts that are discussed when it is to control the venture and the concepts are than drawing into each other. Its different aspects of how the entrepreneurial leader can take control of the direction. How to know how to use leadership, power and motivation is understanding entrepreneurship.
Figure 1 The dynamics of entrepreneurial control: leadership, power and motivation (Wickham, 1998, p. 368).
Wickham's definitions of leadership, power and motivation is (Wickham, 1998, p. 368):
"Leadership might be defined as the power to focus and direct the organization".
"Power might be defined as the ability to influence the course of actions within the organization".
"Motivation might be defined as the process of encouraging an individual to take particular courses of action".
These three aspects are tools the entrepreneur use to reach the vision and turn it into reality and to drive the venture in the direction they wish to take it (Wickham 1998).
Leadership is mainly based of communicate about the common vision and knowing where the company is heading. In figure 2 eight key factors are illustrated that leads to an understanding of the leadership. The challenge though is not to only understand the leadership but also how to develop the leadership skills and how to use them to increase the performance in the organization. And also, leadership is not so much being a leader, is how you are leading (Wickham 1998).
Figure 2 Factors in leadership (Wickham, 1998, p. 370).
1. Personal vision - the entrepreneur's vision is the driving force for leadership.
2. Communication with stakeholders - The entrepreneur must communicate with the stakeholders through meetings, business plans etc. This is in a better way to relate it to the vision.
3. Organizational culture - rules and 'it is in the walls'
4. Knowledge and expertise - Entrepreneurs is experts (Bill Gates in computing).
5. Credibility - With credibility in the company from ex. Employees the leadership becomes easier.
6. Performance of venture - make decisions that will lead to successful outcomes which will gain the credibility.
7. Leadership role - Entrepreneurs are expected to take a leadership role.
8. Desire to lead - wanting to take the role as a leader.
2.3 Entrepreneurial leadership
2.3.1 Definition of entrepreneurial leadership
Without displaying effective leadership behavior, the entrepreneur can't develop new ventures successfully, based on such a fact, we recognize that leadership has begun to garner increased attention in the area (Hmieileski & Ensley, 2007).
Eentrepreneurial leadership is a role which needs to be redefined from the view of various researchers in the past. Gupta et al (2004) also quoted these scholars (McGrath and MacMillan, 2000; Kuratko and Hornsby, 1998; DuBrin, 1995; Slevin and Covin, 1990) and defined entrepreneurial leadership as ''leadership that creates visionary scenarios that are used to assemble and mobilize a 'supporting cast' of participants who become committed by the vision to the discovery and exploitation of strategic value creation.'' The definition of both entrepreneurship and entrepreneurship leadership has generated some important words that will be used to develop our model later in this paper.
2.3.2 Characters of entrepreneurial leadership
The characters of entrepreneurial leaders cannot be over-emphasized especially in a successful organization. Entrepreneurial leaders can be attributed to the following individual characteristics such as vision, problem solving, decision-making, risk taking, and strategic initiatives (Fernald, Solomon, and Tarabishy, 2005). Each characteristic will be explained further according to Fernald, Solomon, and Tarabishy (2005) below:
Vision: A vision stands as a challenge for the entire organization and the goals of an organisation can only be achieved by realistic and feasible vision. Inability to achieve their vision may be as a result of fear of mistakes, inability to tolerate ambiguity, and lack of challenge.
Problem Solving: The ability to find a suitable solution to any emanated problems in an organisation will go along in helping entrepreneurial leader to achieve the set goal. Entrepreneurial leader copes more effectively with emotional, personal, and interpersonal problems and they must also solve, or face, problems quickly and forcefully, regardless of their nature. Solving problem is not only the responsibility of a leader to also with the assistance of co-workers.
Decision-making: Entrepreneurial leader should be courageous enough when making certain decisions. The leaders may be directive or supportive but they must make decisions that commit the organization to critical actions. Listening to the view of co-workers in some decision-making process will enhance more cooperation within the organisation.
Risk-taking: Involvement in a reasonable risk-taking in has been a habit of most successful entrepreneur leaders in the past and understanding that no one can predict the future with certainty. Inability to deal with uncertainty has restrained an organization from achieving its goals.
Strategic initiatives: The vision of long time plan in order to achieve the organisational goals and thinking in a decisive ways is also an attribute of an entrepreneur leaders.
2.3.3 Importance of entrepreneur's leadership
It is said by Roger Ackerman, the chairman and CEO, that it is constant hard to find an entrepreneur who contains the qualities of a leader at the same time. For any company who want to grow particularly, it is a fundamental issue (citing in Share & Embed, 2010).
Entrepreneurial leadership has a great impact on the business outcome. Baldwin (1995) believes that many new businesses fail shortly after inception, and entrepreneurship is a career choice that does not pay on average. For instance, Camerer and Lovallo (1999) thought that overconfidence is the major force for individuals to start a business and the connection between entrepreneurial decisions and overconfidence may explain, in part, the high failure rate of new business owner. The reason is that entrepreneurs have a strong tendency to consider their situation as unique (Koellinger, Minniti, Schade, 2005). Overconfidence may have some benefits for the company, however without over-optimistic judgments; we would see fewer new businesses but higher average success rates and returns among those who had become entrepreneurs. On the other hand, overconfident and potentially unsuccessful entrepreneurs may also generate valuable information that would not be available otherwise (Minniti, 2005). It is not easy to identify whether an entrepreneur should be overconfident when starting and running a new venture but overconfidence is one of the ways of leadership and management which is worth trying. In addition, if a company has a tendency towards having an over controlling leader, it might affect the whole internal management structure, since normally over controlling leader takes it rather difficult to let someone else to take even partial responsibilities.
The effective leadership has a function with all the success of companies no matter what sizes it is (Daily et al., 2002).Entrepreneurial leadership, among the different types of leaderships, obtains the most capacity to influence others to manage resources in a more strategic way, for emphasizing behaviors which seeking opportunity and advantage in the future of the company (Covin & Slevin, 2002; Rowe, 2001).
Values according to Darling et al (2007) was described as foundational attitudes that affect behaviours or states of affairs and are of importance to successful transformational and charismatic entrepreneurial leadership. Furthermore, Darling et al (2007) quoted Yukl,(1998) to have said that these values may be centre on some aspect such as fairness, justice, honesty, discipline, freedom, equality, humanitarianism, loyalty, patriotism, progress, self-fulfilment, pragmatism, courtesy, politeness, programme and cooperation.
Among the attributes of successful entrepreneurial leadership is their ability to enables the other individuals in the organisation to be successful in terms of personal achievement, professional satisfaction, job fulfilment, and emotional health etc (Darling et al 2007). In order to be among the most successful entrepreneurial leaders, it is not necessarily to be the smartest, the best educated, the most experienced, highest paid, and the most gifted etc, Darling et al (2007). The most successful entrepreneurial leaders are those that are able to achieving through the four leadership strategies mentioned earlier before and also be able to combine joy, hope, charity and peace (Batten, 1989; Snyder, 1994).
Entrepreneurship should have capable of corporate transformation (Ghoshal and Bartlett, 1996) by effectively translating When an enterprise has encountered difficulties and problems they can help enterprise to create successive value This allows them to move fast enter into a new area or new structure.
In this chapter, we will explain where and how all the available information and data were collected. Also in this section we described how we will structure all other part during this project.
3.1 Research approaches
We have used a quantitative/ qualitative method to find information about our topic. We can't use the qualitative method with interviews because we are forbidden to contact the company. Among the qualitative instruments we have used in this research work are discussions, observations and literature studies. Critical study and analysis of the background knowledge of all the used literature make us to get a clear view and more understanding of the situation. The Case note and literature was used to get an introduction to, and understanding of, the theories and problem areas included in our paper.
3.2 Data collection and empirical findings
In Google Scholar we searched for articles, and also in Halmstad University database, in the ABI platform and from different Universities library site in Sweden. Also the Emerald insight has been used. We also found information in literature and case article that was included in the course and similar courses. We will compare our empirical findings with the case to the articles to support the case. The keywords we use were: leadership, management, entrepreneurial leader, growth.
3.3 Critical aspect of sources
The authors have their own opinions, and we have interpreted what we think the text really mean and criticise it with.
3.4 Work structure
To begin the work we started to describe the background of the case and surveyed the problem, and also formulate a problem discussion. Then we use our keyword to find our articles and other data for collect information. We then split up the articles between us and of each person studies the literature and summarise it by ourselves. Then we had a group discussion and together we choose what we were focus on, and wrote it down in the literature review chapter. Then we continue with the discussions, but now about the analysis where we analyse the articles together and the articles together with the case. Then we ended with the conclusion and implications. In figure 3 is the work structure illustrated.
In this chapter we discuss the background that leads to our purpose. We also define our limitations.
This chapter includes theory on the chosen field that we will use as a base for our analysis.
Here we present our research method.
Here we present a summary of the case.
In this chapter we analyze the empirical material in terms of the theories.
We concluded from the analysis and stated the implications and we headlight our purpose.
Figure 3: The project work Structure
4.0 Empirical data
The empirical study is according to the issues found in a certain case, Index Braille and Björn Löfstedt. The case is focusing on how the business develops and how it manages to be a good business. Here a short presentation and background study of the company based from the case is done.
4.1 Foundation of Index Braille AB: 1982-1984
Index Braille AB is a company, which originally was a privately-owned business, in the northern parts of Sweden that produce Braille printers for blind people. It is printers who make it possible for blind people to communicate with writing and reading.
The founder of the printing company is Björn Löfstedt. He generated the ideas originally from his mother inability to see. Björn's mother is blind and worked as an administrative assistant and found it hard to work and it went slowly. Björn's mother became his role model and he wanted to simplify her life and work. He started established as back as 1982.
The mission for Index Braille AB is "Index Braille shall be the leading company in developing, producing and distributing products for written communication between blind people", and the goal is "to stay as the world quality leading company in the market sector".
The first develop of the product was a long process and the company was only entering small markets. At the golden times was when the company started to extending and later they entered the US market. The company even extended with employees, new buildings that manage greater production and customers in different markets. When entering new markets, the Index Company had to adjust their products like language of the keyboards and the manuals. Index Braille AB didn't have any problems with their competitors. The competitors products were much more expansive than Index's and Index could produce larger volumes that the markets where demanding for, as a result of the low price.
4.2 Golden times of the company: 1984-1988
The golden times for the company were between 1984 and 1988. The company grew from two persons to twelve. In 1988 the relationship and collaboration with the American distributor came to an end because the distributor was bought up by a competitor, and continued cooperation was difficult. Even was also decrease in the sales in some European countries such as in Germany, British and French markets. The company was focusing in different directions and the confusion was a fact. The solution came to be to split up the company, and Björn became to own the majority of Index Braille AB and Polar Printer AB was another domestic company that was born, where the focus was on a broader market and product, owned by Stellan and Inger Syk, former employees for Björn.
Björn started to build up a clearer concept in his company and began to concentrate on a printer for international markets and standardization of the product. He now had several collaborations with other distributors. He could therefore increase the sale more efficiently and increase markets.
4.3 Split into two firms: 1988-1991
In 1988 there was an important turning point for the Index Company. Until then Index has been running as an unstructured business. The Syk's (Inger and Staffan) and Björn had different goals and opinions of where the company was heading and different focus. They decided to split up, and Index became Index Braille Printer Company and Polar Print AB. The both parts avoided becoming enemies and today Polar Print AB is a successful company that offers a broad range of products and solutions for blinds. Björn instead focused on only one product - the Braille Printer. Björn bought most of the shares of Braille Printer Company from minority partners and even from Torvald who was the last part-owner (1991) in the company and became the majority owner.
4.4 Re-internationalization and the future: 1991-2007
Until 1991 this period was tough for Björn with only focusing on developing his only product - his old printer to something more decent. After 1991 the new printer's was available and ready to face the market. It was easier for him this time to find appropriated distributors because he knew where to look. He already had a functioning network and Björn could therefore be more specific in choosing the distributors and markets he wanted to focus on, instead of the other way around. He began to enter new markets and develop the old ones. He was clearer of where the company was heading. He was also widening his distributor system and wasn't no longer dependent on single one.
Björn's journey has been eventful and his way of leading the company has been through a major changes. In the first stage of his company the leadership wasn't defined. The company was owned by several partners, mostly Björn himself and Torvald, others were minority partners. The partners and employees was largely people Björn knew and had a close relation with. In the case we study, they missed a strong and clear leadership in the beginning which confused the employees and the board. The case is originally built up without a specific strategy which affected the leadership and not having a strong and one certain leader with common goal.
Another important fact is that the Index Braille AB has missed to define their focus and goals and it has let the leader in company to loss the total control of the company. The leadership became like that because of the employees in the company, who were close friends to Björn, his brother, friend's wives, relatives and other acquaintances. He had also his mother as a mentor and involved as a test person. They had too close relationship among the employees and the leader, and that made the leadership vague. Because of Björns relationship with the employees it probably wasn't easy to control the leadership with an "iron-hand".
Today, Björn is focusing mostly of the business and the strategic questions of the company's future and has built up a clear leadership and position. Björn manage to turn the company in a common direction and therefore become a strong leader.
As showed in the literature review part, the theory of characters of an entrepreneurial leadership has been illustrated. We will connect the empirical data of Index Braille Company with each trait of entrepreneurial leadership in the four periods of the development of the company. Strengths and weaknesses of containing certain characters in each period will be made to observe the influence of entrepreneurial leadership on the outcome of the company.
5.1 Period 1: Foundation of Index Braille AB: 1982-1984
The first period between 1982 -1988, will be observed from the aspect from Björn's different aspects of characteristics and behavior, to see are they fit the traits of entrepreneurial leadership or not. Strengths and weaknesses of having the characters of entrepreneurial leadership will be discussed.
We know at the initial stage, ideas are originally coming from his mother. Björn's mother is blind and Björn's mother became his role model and he wanted to simplify her life and work. He started his creation. At that time, Björn was an innovative person who designs the product by himself because of his mother and due to the motivation of improving standard of his mother's life, he established the company in 1982 and can be regarded as an entrepreneur.
However, at the beginning of the foundation of the company, Björn was more conservative about the products because he thought there is still a lot of improvements to do and what they have done was just at the beginning while his partner Torvald didn't think so. This indicates that at that period of time, Björn was not an indeed risk taking person.
As said by Björn, "We had no experience with such things. We needed somebody with legal skills and prior experience to deal with this mess". And then Björn decided to ask Rolf Ã-sterberg to be a minority partner and also the board member in the company to help them. Because Rolf was a famous manager at that time since he has been a great CEO and worked at Svensk Film industry AB, which was the largest company in the Scandinavia. We can see that Björn was quite a decision maker which a good leader should obtain. As an entrepreneurial leader, he should commit the organization to critical action when the company needs a decision.
Strengths: Having the character of decision making is one of the important characters of an entrepreneurial leadership. To guide the corporation move into the correct direction is big task for the leader, whether to point out the command in the right time is necessarily needed. To invite Rolf o assistant his company is quite a sensible decision so that Rolf has helped them to concur tense relationship between Norwegian firms. After that Björn ended the contract with the Norwegian firm and open a new period of the future development.
Weaknesses: Lacking of the characters of an entrepreneurial leadership, like risk taking is crucial to the development of company .As we know when Björn and his friend Torvald had finally finished the study of the products, it should be a good chance to sell it and open a company. It was Torvald decision to earn some money and to take the risk, and Björn, however, thought they should put on more time on improvement of the products. If Torvald hadn't insisted at that time, they might lose the chance to be successful. Therefore, from this point of view, we can know that sometimes to take a risk may be open a new area for one person.
5.2 Period 2: Golden times of the company: 1984-1988
In this period of time, the Index Braille company goes to international from 1984 to 1988. According to Björn, this is the golden time in the line of his company.
After Björn finished the contract with the Norwegian company, with the thought of an entrepreneurial leader, he showed his great vision to seek some markets abroad for expanding the company by exporting.
"You can't survive in this business without exporting. You couldn't have a business and only concentrate on the Swedish market which would sell 40 printers annually."
As soon as he realized the opportunities and necessity for the company to go abroad, he made his decision to traveling around to different countries and demonstrating his products to consumers in the local countries. As an entrepreneurial leader, he firmly made his decision and led the whole company a big step forward. Therefore, more money and business opportunities were met at that time. We can know from this that the character of "decision making" will be an essential trait which leads the firm into a suitable track.
During that time, language barrier was the biggest problem for Björn to communicate with different businesses. Since he was a student, all the literatures were written in Swedish and it was very rare to hear from any media and have the opportunity to speak. Therefore, Björn, as the entrepreneurial leader of the company, he made up his mind to learn English language. Efficient leadership must face and solve the problem quickly and forcefully, to have a better communication with the foreign distributors. He forced himself to learn the English language and solved the language problem.
In 1986, Björn heard that there was a very strong union for the blinds in France, which provided a large amount of aids demand used by blinds in schools, workplaces and other organizations. Immediately after he got the information, he planned to send Staffen who speaks a little French to communicate with the local distributor to contact the local union. As an entrepreneurial leader of the Index Company, he has great strategic initiatives to guide the company's future direction.
Strengths: To have the characters of vision, Björn realized the opportunities of the company's future and started to enter the international markets, which will definitely bring them more markets and more profits rather than only focus on the Swedish market. And of course, after the deep consideration of the markets choice, he made the decision quickly to enter the different countries, and then the exporting just began. To knowing the strengths of entering the international markets, like bring more market share in the blind printer industry as well as the failure of the venture. He made up his mind to the resolute decision: go international, which can be proved later the most sensitive decision he had made. What's more, having another character of entrepreneurial leadership, problem solving can be another essential trait to improve the development of the company. If Björn hadn't swept the difficulties of entering the international markets, it would be hard to be understood when they do business. Also, if Björn hadn't have the mind of strategic initiatives, he would also lose the chance to open the France market.
Weaknesses: It can be seen that during this period, Björn had all the characters have been discussed in the theory part of an entrepreneurial leader. Therefore, no obvious weakness can be found.
5.3 Period 3: Split into two firms: 1988-1991
Before Björn decided to buy everyone out, he was the only one taking all the risks according to him "I pawned my business, home, car, wife, kids, and the dog - everything I had â€¦â€¦ and if things had gone bad, I would be the only one losing everything"
According to Fernald, Solomon, and Tarabishy (2005) description of an entrepreneurial leader characteristics is to be a visionary which stands as a challenge for the entire organization and the goals of an organisation can only be achieved by realistic and feasible vision. Inability to achieve their vision may be as a result of fear of mistakes, inability to tolerate ambiguity, and lack of challenge. In order to be more focus he knows that have almost everything in the company will enable him to have more power to decide some issues.
Strengths: Björn was the courage he has to buy everyone out and increasing his ability to take bigger risk than before since no one could blame him for any failure. Another strengthen factor for Björn is that he was able to state his mission statement, hence all the employee now have a common mission which is "to be the leading company in developing, producing and distributing products for written communication between blind people"
He can now concentrate only on printers for the international market which might not be easily achieved if he has not bought everyone out.
Weaknesses: The demerit of the splitting of the company was that it makes the decision making ability of Björn to look for autocratic in nature and making all member of the board to look like figure head. To be a good entrepreneurial leader does not necessarily mean it's a good manager. He has little or no experience in managerial position which is affecting his decision making process. He does not really know the importance of financial tools.
5.4 Period 4: Re-internationalization and the future: 1991-2007
Expansion by entry to the international market has been a remarkable success in Björn's experience with Index Braille printer. He was able to learn from his failure from the first time he trade at international level. According to Björn "the mistakes we did in US market would never happen again and at that time I had too little experience and was kind-hearted. If I had kept a cool head I should hace asked him to perform before throwing money and products after himAll the experience that we have today, we have learned the hard way".
He also learnt that establishing a new distributor will be more costly than partner with already established distributors.
Internationalisation has given the company a great competition because it has never faced any domestic competition before.
Strengths: One of his main strength in the foreign markets was his ability to make use of different network and changes in the general-agent structure. Björn now have a limited risk when dealing with any distributors and this has help him to save more money than before. He already had a functioning network and Björn could therefore be more specific in choosing the distributors and markets he wanted to focus on, instead of the other way around.
In addition, he realised that service is the key to sales and as a result of that he go in cooperation with TSI an independent American service centre for repairing printer. This service centre helped him to market his product
The cultural difference has an effect on his product because he needs to change the keyboard for each country they are trading and he find it difficult to adapt at initial stage. Also in the US market one of his problem was the American end user are having a strong preference in using domestic products and this have affected its sales. As a result of huge demand for his product, the company has no quality control on the parts they bought and also on the printers they sold.
The lack of adequate information on certain market such as India, China, and Iran etc for the need of this printer would have help to get more sales.
6.0 Conclusions and Implication
In this chapter, we will conclude what we've discussed in the analysis part and to see have we answered the question we raised at the beginning.
Our research question is:
How important is the entrepreneurial leadership from the aspect of its influence on the development of the company?
To answer the question, we have analyzed the five characters of an entrepreneurial leadership we found in theories and discussed in detail what strengths and weaknesses do these characters have when they are influencing the development of the firm. Therefore, we will conclude the importance after this strengths and weaknesses.
The first period, we know that Björn hasn't built the entrepreneurial leadership totally, some traits were still belongs to an entrepreneur, like innovation, which motivated him to create more. But as a leader of a whole company, he should consider more. However, Björn had most of the characters of an entrepreneurial leader, like "decision making" which will give the whole company a push to grow in a center direction. Generally speaking, the direction decided by the leader was sensible and helpfull for the development of the company. On the other hand, because of Björn's lack of "risk taking", they might lose the chance to do the business, if Torvald hadn't sticked to his mind to take the risk.
The second period, we can find out that it is the golden time for the company, as Björn had built all the characters an entrepreneurial leader will contain."Decision making" forced the company to export internationally, and gained more market shares and more profits at that time."Problem solving had help Björn to conquer the language problem and make the communication with distributors from different countries more smoothly and easily which also contributed largely to the growth of the company. To have a strategic initiatives mind let Björn catch up with the France market and grew bigger.
The third period, Björn has manage to turn the company to focus in common direction and therefore become a strong leader. Although he was a good decision maker but would have learn more in his decision making process if he involve member of board and some employee to partake. It can also serve as a motivational factor according to Darling et al (2007) who described an entrepreneurial leader as one that inspires his or her employees or co-workers by appropriate means, sufficient competence to influence the workers in order to participate willing in achieving an innovative goals of their organization.
The fourth period, according to the old adage which says "experience is the best teacher" Björn performance excellently in the international market now than before was as a result of several failure which he learnt from. Björn is focusing mostly on the business and the strategic questions of the company's future and has built up a clear leadership and position.
We can conclude from the consequence of the influence from features of entrepreneurial leadership that the entrepreneurial leadership had laid on in vital impact on the company's growth.
The paper offers practical advice for an entrepreneurial leader on how to effectively improve the role of leadership in a small business establishment. Also in appreciating the leadership learning task that prospering entrepreneur's activity in a new venture creation. From a good leadership perspective, there is significant value in enabling entrepreneurs to engage in meaningful dialogue, critical reflection and purposive action with their employees so as to communicate the mission of the organisation to them all the time.
Successful leadership has been found to be based upon five key characteristics through vision, problem solving, decision-making, risk taking, and strategic initiatives.
These features provide a new paradigm of interactive cues and a foundational core for the successful fulfillment of company strategies.
The findings suggested focusing on these leadership practices helps organizations to build a strong leadership culture that is supportive of entrepreneurial leader in an organisation.