1.5.6 Moving From An Entrepreneur To A Leader

Question 1

as a business grows to have more staff, an entrepreneur will have to develop into a leader. they must be prepared to do what three things ?

Answer 1

delegate responsibility
develop emotional intelligence
become less reactive

Question 2

why will a leader need to delegate responsibility

Answer 2

• they must trust their staff and verify their work to ensure they are doing it correctly
• this may be easier if the entrepreneur hires people with similar beliefs and values as themselves

Question 3

why will a leader need to have emotional intelligence

Answer 3

• this is the ability to recognise and manage your own emotions as well as recognise others’ emotions and respond appropriately
• they will have to listen and have an open mind
• getting a new perspective will help the business grow

Question 4

why will the leader need to become less reactive

Answer 4

• with lots of staff they must consider the consequences of their decisions
• they may even consult their staff

Question 5

what are the potential difficulties of becoming a leader

Answer 5

• entrepreneur lacking leadership qualities, may have to hire a CEO
• trusting employees, sharing ownership and control

Question 6

evaluate delegating responsibility for a leader

Answer 6

+ Employees will be more motivated and efficient
+ Employees may have expertise in areas that the entrepreneur doesn’t
- may find it hard to trust others
- employees may require expensive training

Question 7

why might a leader find it difficult to develop emotional intelligence

Answer 7

• a leader must have trust and confidence in their workforce
• this will help to develop a positive business culture with motivated staff
• they must be able to see beyond their perspective and their objectives

Question 8

evaluate becoming less reactive for an entrepreneur

Answer 8

+ Employees feel valued as the leader is considering the effects on employees before making decisions
- leader may need to make quick decisions if the business is in a dynamic market

Question 9

top 3 reasons an entrepreneur may find it difficult to become a leader

Answer 9

1. they must accept that other people may have more knowledge and expertise than them in certain areas
   2 they must have the ability to promote motivation in the workforce
   3 they must see the bigger picture and consider the impacts of their actions