When we think about entrepreneurship and leadership, we may confuse them. For some, the entrepreneur is not always a leader, just as a leader is not always an entrepreneur.
These are two very convergent actions because when you start a business, you automatically take it on and start to lead it. However, we need to understand what the real meaning of each concept is and how they work in practice.
Leadership is the ability to influence other people, motivate them, and direct them. A good leader leads the entire team to achieve higher results and keep them engaged.
Entrepreneurship, in turn, is about initiative and proactivity. It is your impetus to seek new opportunities, solve problems and find ways to reach your own goals.
In this article, you will see how you can work for both entrepreneurship and leadership together to lead teams.
What is entrepreneurship?
It can create something new and turn it into reality, using attributes of great courage and daring. He/she has a spirit of great resilience and doesn’t let himself down by small failures. Therefore his desire to be an entrepreneur becomes his reason for living, his cause, and he manages to persist even when many doubt his dreams.
Great entrepreneurs are admired for their achievements, their achievements and get many followers during their trajectory.
What is leadership?
It is the one who manages to transform and develop potential professionals into great talents not only in what they do but also in other areas of their lives, some have the incredible ability to form new leaders just by example.
Leading is making everyone understand the importance that their actions directly impact the company’s development and how important this is for their personal development.
In short, it is to raise awareness, motivate without being authoritarian, get what you need, but contribute to the growth of the company, the employee, and yourself.
And, after all, you can’t deny that the leader is also an entrepreneur.
What is the similarity between undertaking and leading?
There is a lot of intersection between the two ideas, which is where some confusion comes from. Here’s what these two terms have in common.
Both leaders and entrepreneurs need to be aware of their responsibilities and not deviate from them. A common habit in many businesses is that, rather than stepping forward to solve problems, many individuals prefer to “push” these issues onto other people, taking away any blame.
From the leader’s perspective, it is their role to be at the front of the group at these times, transmitting more security and facilitating the fulfillment of tasks. From the entrepreneur’s point of view, he is always responsible for all the investment in his own business. In this way, it is natural for him to be involved in all its aspects.
Lead and assist the team
Again, both figures need to work alongside other professionals to reach a particular goal. And the bigger the team, the more important it is to develop these skills.
Even highly qualified professionals need guidance to achieve their goals, especially in multidisciplinary teams. A good leader, by definition, can offer support to these people in their daily work, facilitating their routines, while a good entrepreneur has clear goals and a plan that involves all these people.
And what are the differences?
As we’ve already mentioned, undertaking and leading are not the same things, despite being sides of the same coin. Some features are not exclusive, but they are not necessarily shared. Here are some examples.
Macro and micro-targeting
The micro-processes of a company are day-to-day actions, such as individual customer service and space organization. The macro, in turn, is the general plan, which involves each part of the company and how they affect each other.
A leader is closer to the micro, as he is in direct contact with the employees daily, while the entrepreneur thinks mainly about the macro decisions of his business. And, in some cases, these two perspectives can lead to different conclusions and actions.
Unless the leading figure also owns the company, their ability to change within the business may be somewhat limited. Whenever any change in processes is considered, it is necessary to have the permission of a superior, for example. This is a privilege reserved for business managers.
A good entrepreneur/leader knows how to identify opportunities
An entrepreneur takes the initiative to become an entrepreneur, to have his own business. He is the one who knows how to identify opportunities and transform them into a profitable organization. Entrepreneurs are individuals who are creative, innovative, bold, who establish strategies that will shape their future.
He knows how to determine which and how his products or services will be placed on the market. Whether in the digital, business, commercial, social, or any other area, the entrepreneur ends up becoming a leader.
Thus, it is necessary to develop leadership skills, such as empathy, persuasion, self-confidence, learning to give and receive feedback, being the example, among many others.
Entrepreneurship means undertaking, solving a problem or complicated situation. It is also about adding value, knowing how to identify opportunities, and transforming them into a profitable business.
Entrepreneurship is essential in societies, as it is through it that companies seek innovation and are concerned with transforming knowledge into new products.
A good entrepreneur analyzes, identifies, defines, decides, and monitors the performance of his business. It is the one who discovers pitfalls and ends up implementing new directions in search of effective results. For no one wants to be led by a person who lacks courage and self-confidence.
Leaders and entrepreneurs must act equally
In the same way as the leader, the entrepreneur has to make all his followers or employees understand the importance of the impact of their actions on the company’s development and how important it is for their personal development.
In short, for both positions, it is to raise awareness and motivate without being authoritarian, getting what you need, but contributing to the growth of the company, the employee, and oneself. However, Entrepreneurship and leadership are related, they also have their particularities, referring to aspects related to management.
The leader has a very responsible position within the organization, his ability to solve management problems and influence people makes the difference for the development that the company needs to grow. However, he has some limitations due to his position and organizational policy.
As much as he sees the solution to certain issues, he can only put it into practice with the approval of a direct superior who is sometimes the entrepreneur.
Entrepreneurs, on the other hand, make a lot of mistakes about the leader, because they are not afraid. They act as quickly as possible to try to solve the situation, and hence their quality of solving problems quickly.
How to be a better leader and entrepreneur?
Leadership and entrepreneurship are two skills that can be cultivated and there is no need for natural talent. If you have the right direction, you can drill those skills and improve the quality of your business.
Here are some tips for more successful entrepreneurship and leadership:
Develop your communication skills
The most important point, for both the entrepreneur and the leader, is knowing how to communicate. This involves communicating your ideas clearly, understanding what others are saying, and knowing how to express yourself clearly, coherently, and politely in your everyday life.
These professionals need to deal directly with the team, avoiding doubts and discovering what they need to do a good job. Without communication and social interaction skills, a leader does not have much to contribute to the group, even if he is a competent professional in other areas.
Know your business well
Companies should understand how operations in many sectors work. In other words, be a well-trained professional prepared to conduct a business in your area of expertise.
However, many start entrepreneurs with no sense of the different aspects of the business. This often makes it difficult to coordinate the team, set realistic goals, and devise an action plan.
Studying the business and training is part of every good entrepreneur’s routine. The sooner you start, the sooner you can reverse the situation.
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