THE ENTREPRENEUR IS TO BE A LEADER

Discover leadership as a concept that favors the entrepreneur to succeed while leading, inspiring, and driving the growth of a team.

ABSTRACT

This article is an attempt to allow the reader to be specific in the field of entrepreneurship, understanding the core concept of the entrepreneur and how to transform him/herself to become a leader from an entrepreneurial perspective. The content is a construction of research studies, including direct references, which allows the reader to dive deep into the perspective stream to determine how they become the person to whom the article referred.

Keywords: entrepreneur, leader, entrepreneurship, leadership

INTRODUCTION

The industrial world has been changing with new adaptations to its originated nature due to technological advancements. Nowadays, with advanced technology, industrial competitiveness has been increasing, creating many entrepreneurial trends and prospects for innovative people.

Open economic potentials caused by globalization have been creating a vast network. It has covered almost every part of the world, regardless of developed or undeveloped countries. Under this globalized network, the spotlight focuses on the entrepreneur who introduces brand-new innovative ideas and concepts to generate profits and opportunities. This is where Entrepreneurship as an economic and enterprise term overtakes globalized economical ideologies, engaging in free trade among all nations. Perhaps, all people in this world with innovative ideas realized that they have the chance to create their concept to its existence, somehow, depending on their vision, missions, and ethics. (E.g.: the Chinese entrepreneur Jack Ma founded the Alibaba group that leads almost 2/3 of the e-commerce world and has taken over the internal and external industries of the Chinese and global economy.)

“The entrepreneur is one who uses all means of production to create profit through the value of the products that are thereby created” (Agard, 2011). This is the very earliest definition of entrepreneur, which had declared by Jean Baptiste Say in the year 1816. Say’s definition of an entrepreneur vividly exposes the person who innovates or produces products to sell and generate profits. He/she is economically categorized as a significant character even more than 100 years ago by the social and economic system.

Due to this characterized standout persona, the term ‘entrepreneur’ receives an important ethical value in society. Eventually, this persona called entrepreneur, with the production and created profits, transforms him/herself into a leader because he/she creates opportunities for other people. This is where the entrepreneur becomes a leader with social and enterprise responsibilities.

“A leader is someone you opt to follow to a place you would not go by yourself” (Smith and Cockburn, 2021). Joel Baker’s definition of the leader in the year of 1990s clearly accentuates that a leader tends to guide a group of people while being a vision to them. The followers trust the leader exceptionally because they believe there is a benefit in their choice since this particular person will guide them through thick and thin, to traverse the malicious present condition, until they see a bright future to thrive.

However, entrepreneurship and leadership are somewhat related terms, which influence one another. But it does not mean an entrepreneur has to be a leader to exist in entrepreneurship. The mere expectation of an entrepreneur is to create profits. It depends on the entrepreneur’s choice, vision, and personality to become a leader.

“Leadership is an ethical quality and a mindset that an entrepreneur can adopt if they have the motive to inspire many followers who have the same agenda as them.”

– Omalka Arachi

OVERVIEW

Who is an entrepreneur?

Entrepreneurs are all-time risk-takers. They have endowed faith in any concept, which they risk to proceed with, to generate profits somehow. Jean Baptiste Say’s definition of the entrepreneur, as discussed earlier, describes that since the historical time, the entrepreneur is a contributor to the economy. But in today’s world, the entrepreneur’s value is much more likely to decline to an image as a rugged and heroic individual (Ruef,2010). The reason for this matter is due to the highly increasing competition in the business industry.

Generally, anyone trying to survive in a country and society has to work for their daily expenses. Or, if the government is not paying them a benefit payment, they would starve without a daily meal. The social order maintains in that particular viewpoint. On the other hand, the world offers a free economy. A motivated person can find his/her daily expenses, without a hassle, since the economy is open. They just have to work hard and earn it. There is only one law that exists in this economic gesture: people have to have employment in an organization, or they must create or produce a product, or they must sell or distribute a product that already exists.

There are two different segments to categorize Entrepreneurs:

1. Commercial entrepreneurs: they have the intention to accumulate wealth for personal and commercial purposes by expecting profits, turnover, and market shares in return for the products or services they provide (Shukla, 2020).
2. Social entrepreneur: according to Paul Light’s definition in the year 2006, “an individual, group, network, organization, or alliance of people, in an organization, who seeks large-scale change through pattern-breaking ideas to influence governments, non-profits, and local businesses.” (Agard, 2011).

Commercial entrepreneurs are highly motivated by profit while social entrepreneurs are occupied by a social mission. But both of these entrepreneurs hold only one desire—to serve themselves while serving a community.

Once there was a video on Facebook regarding a homeless man washing windshields in traffic. In the video, he started washing a windshield of a random car. The owner of the car called him, grabbed his detergent bottle, and told him, “This is old school.” Then, he gave him a box of masks, during the Covid-19 pandemic, for him to sell and make a profit. In the meantime, he offered him some money saying, “This is how you sell,” and showed him the value of a mask by buying one out of the given box: the act taught him how to sell. Later, when he checked him on the next day at the same spot, the homeless man already has started generating a profit and wanted to invest his accumulation to purchase more products from him.

This video-recorded incident exposed the real meaning of an entrepreneur because both the homeless man and the man who offered the box of masks showed the characteristics of an entrepreneur. The man who offered the box of masks did not expect the homeless man to pay for what he offered, but the homeless man had the desire to sell the product and accumulate profit to invest in the same activity.

Nonetheless, entrepreneurs and entrepreneurship exist in almost every corner of the world that is complex to determine an exact prospect for it. People become entrepreneurs intentionally or unintentionally. So, people attempt to be occupied while searching for any source of income that can support their living i.e.: they frequently look for any residual income that can support their living.

Entrepreneurs are clever thinkers; they can define the same business idea in ten different concepts by creating a propagation. They prefer to favor themselves while favoring another person. Exclusivity is their key assimilation to success. Therefore, they have become a great contribution to the local and global economy by innovating and creating new employment opportunities.

The review below introduces five key elements to evaluate skills and attributes that conceptualize a successful entrepreneur.

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• Strategical thinking: successful entrepreneurs are strategic thinkers; they prefer to establish what they desire the most to gain advantages for their establishment. They expect immediate feedback from other parties to develop their concept. Once they receive the feedback, they proceed to develop their concept searching for perfection with revolutionizing ideas. They are prudence and achievement-oriented. Also, they focus on their concept with keen foresight.
• Prediction of risks: successful entrepreneurs are risk-takers. They do not doubt their entrepreneurial investment. With a hard-working attitude, they continue taking responsibility to achieve goals. Planning and organizing abilities are their main focus to reduce risks. They prefer to practice self-reliance and independence rather than searching for others to support or help their concepts. Business acumen and sincerity allow them to keep close relationships with other parties to lessen risk through their business visions and missions.
• Introducing futuristic curriculums: successful entrepreneurs have an innovative spirit. Innovation is the main aspect for them to seek changes in the industry. They introduce new features for new or existing industries by using their creativity. Most of the entrepreneurs are visionaries, they are liable to have a futuristic vision when generating new ideas. Also, they have high confidence in their ability to succeed with their futuristic curriculums.
• Comprehensive analysis of economic concepts: successful entrepreneurs have a vision in perspective because they analyze their concept relying on a long-term vision. While they are establishing their concepts, they have strong desires in contributing to society through social missions, such as partnering with nonprofit organizations or introducing green concepts. They do not trap themselves in a specific location, instead, they do research in global and local economies to create new economic opportunities. According to the economic changes and variations, they are educated to adapt by using their instincts.
• Advanced managerial skills: successful entrepreneurs hold immense interpersonal skills when dealing behalf of their business prospects. Most startup entrepreneurs work as managers for their businesses. So, they believe in resiliency when negotiating with other parties or their employees to manage their businesses. They have a high level of energy that they use with dedication to reach their visions and missions. With an advanced management style, they stay optimistic at all times. And they keep close public relations to develop and spread their concepts throughout their creation.

WHO IS A LEADER?

The world has been inspired by many leaders since the historical time. Leaders are made caused by an exigent reason i.e.: leaders are chosen and made due to an insistent circumstance. Most of the time, there is an apparent reason for a leader to come into power. People choose a leader depending on a person’s character and how much that person can endure in a period to serve the community or an audience. There are high expectations in people when they vote to choose a leader in any geographic location.

According to Baker’s definition of the leader, as mentioned earlier in this paper: at all times, people tend to rely on an ideal person whoever they bring to power by expecting that person to guide them, appropriately. Also, they believe that they deserve to receive the best experience from the leader in return for the vote for a duration of time.

The leader has to be a strategic thinker and a planner with the ability to handle a group of people according to various situations. Their leadership style and approach have to be concerned with the situation, so they can determine appropriate solutions, therefore. There are three basic Leadership Styles introduced by Lewin’s Iowa Study that are discussed throughout the world.

1. Autocratic Leadership: the leader gives repressive ideologies and thoroughly orders his/her team to carry out tasks to meet expectations.
2. Democratic Leadership: the leader will be supporting and guide the group members while contributing to carrying out tasks by exploring his/her team’s inputs.
3. Laissez-Faire Leadership: the leader is delegating and offers less guidance to the team while expecting them to make decisions with responsibilities (Patrick and Andriopoulos, 2014).

And there are four basic leadership approaches introduced by Ebert and Griffin.

1. Trait approach: Leadership determines by the essential characteristic of a leader. It distinguishes by intelligence, confidence, knowledge about the job, previous experiences, and understanding of social norms and democracy.
2. Situational approach: Leadership differentiates upon different situations to lead followers. Also, leaders and followers have to work together for better outcomes.
3. Behavioral approach: Leadership focuses strictly on leaders’ behavior. It determines by their style and how accurately they function as leaders.
4. Transactional Leaders: Leadership focuses on training and coaching followers, motivating them to achieve tasks and goals (Ebert and Griffin, 2015).

Leaders naturally organize themselves to follow up with their unique leadership style to lead affluently and strategically according to the situation.

Once the Ford Motor Company had to face a downturn crisis of $3.3 billion lost between 1980 and 1982. In contrast to the newly elected president of the company Donald Peterson had decided to serve as a catalyst, who expected his employees to come up with solutions themselves rather than looking for answers. At that time, he had a participative leadership style i.e.: democratic leadership style, maintaining a low profile, which allowed him to obtain a correct vision and understanding of the leader, follower, and the situation for him to execute strategic plans and solutions with the help of his team. Yet, Peterson and the Ford company reached an astounding success in 1987 with a remarkable profit surpass, competing in the industry after the calamity (Pascale, 1991). Ford company’s story is a great example that exposes strategic leadership due to its leader’s unique leadership style.

Another example of leadership and leader is limited to the situation, proven by Sir Winston Churchill’s story during WWII. He served in different leadership positions before the WWII event, but due to the Royal request and much-needed decision-making intricacy, he had brought into power (Perry, 2010). His best performances had not been highlighted until the events of Dunkirk. He showed extraordinary achievements as a talented leader; but after the war was over, most of the parliament and his country voted him out of office since they believed he was not compatible to lead them anymore because of his leadership style (Zenger and Folkman, 2002).

Therefore, the leader has to be a person who can prevent pitfalls: think and plan strategically, according to the circumstance, to approach and inspire a group of followers with a correct vision and a mission.

TRAITS OF AN ENTREPRENEUR AND A LEADER

“The entrepreneurial leader is a ‘one-man army,’ and his army is his thoughts, ideas, skills, and personality, so he intelligently uses his army to be successful from the perspective of Entrepreneurship and Leadership.”

– Omalka Arachi

FROM A SMALL SPACE TO A CORPORATE BUILDING

Entrepreneurial Overview of Jeff Bezos and Amazon

Jeff Bezos started Amazon in July 1994 as a small bookstore in his garage located in Seattle. Even before moving to Seattle, he was employed as a vice president at an investment company in New York. But he decided to leave the company with a high risk to start his business idea from scratch. In 1992, when he started the company, the internet was overtaking most parts of the USA. He addressed, “I’d never seen or heard of anything that grew that fast.” His vision was extensive even though he started the company as a small business. Due to the high demand for e-commerce, Bezos decided to analyze 20 products that he could market and sell online. His strategic entrepreneurial approach was smart.

Finally, he decided to list books rather than other products because books do not have an expiration date. And there is no need for tryouts since all published books are identical from one bookstore to another. Then, he introduced customers to purchase books as gifts. At the start he only had one employee working for him apart from his wife. Therefore, he hired another employee that can team up and develop the website. On July 16^th, 1995, Amazon launched its website. Within the first week, the business received $12,000 worth of book orders. At the end of the month, Amazon generated increasing profits by reaching out to 50 states in the USA and 45 countries around the world.

Bezos had a hard-working attitude and a strong desire to compete with other retailers in the industry. He always motivated his employees to be committed and competitive. He used the best cost-effective methods with his frugal thinking to fund his company. (E.g.: He used door furniture to build desks for the company, requested his employees to pay for their parking tickets, leased a private jet for the company, and invested in new internet companies and advancing technology.)

In May 1997, Amazon released the company’s stock to the public with an initial public offering (IPO). They raise $54 million. Eventually, Amazon has become one of the leading bookstores in the world by overtaking both Barnes and Noble and Borders.

Jeff Bezos is a fine idol who inspired the world when it comes to entrepreneurship and leadership. However, his strong desire motivated him and his employees to stand in the place where they have reached today.

Abstracted reference: (Moore, 2019)

ENTREPRENEUR SERVES THE SOCIETY AS A LEADER

Today’s society is inspired politically and economically by many leaders. But, out of all leaders, entrepreneurs have been an important part of many countries because of their innovative and profit-making desire. The entrepreneurs work under clear visions and multiple missions. They tend to invest in one business after another business expecting to create more opportunities for themselves and others. Their experimental attitude is the key trait that guides them to think and serve as leaders in society.

However, as they become leaders from the phase as entrepreneurs, they are not only retaining themselves in the core concept of profit-making, instead, they also wish to inspire others, regardless of the consequences i.e., they become national heroes as a leader for their dedication to serve the community where they bloomed from as a child with high hopes.

The above introduction defines the reputation of two business magnets when they called upon a meeting with Hillary Clinton. Mukesh Ambani was estimated to be worth a wealth, which exceeded $19 billion at the time. He explained his mission to control emissions through innovative technology, with a creative solution, to reduce strain between developed and developing nations. Also, Ratan Tata, who owns a reputed company in the Indian subcontinent, explained how his enterprise was volunteering to provide nutrients through milk products to children across India. (Cappelli, Singh, Singh and Useem, 2010)

The national leadership of these two leaders not only exposes a micro concept but an international trait, which can influence other entrepreneurs to become leaders.

CONCLUSION

A person with a small idea starts from scratch, struggling too hard to establish what he desired the most, then becomes an entrepreneur who tends to drag in opportunities for himself and all the others, introducing innovative concepts to be more advanced and empirical at the same time. He is then eventually transforming himself into a leader with the reputation he created for himself, and then, ends up as a national hero nevertheless.

In contrast, the entrepreneur is key to society with an end mission and a vision to become a leader with leadership traits, which would not once be second to none, therefore they are the stars in the economy of the sky.

REFERENCE

Agard, K., 2011. Leadership in nonprofit organizations. Los Angeles [etc.]: Sage Publications, p.476 – 477

Capelli, P., Singh, H., Singh, J. and Useem, M., 2010. The India Way. Boston: Harvard Business School Publishing, p3.

Ebert, R. and Griffin, R., 2015. Business Essentials. 10th ed. London: Pearson Education, Inc., pp.09-33.

Patrick, D. and Andriopoulos, C., 2014. Managing Change, Creativity And Innovation. Thousand Oaks: SAGE Publications, p.186.

Shukla, M., 2020. Social entrepreneurship in India. New Delhi: SAGE Publications India Pvt Ltd., p.80.

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