1.5.6 Moving from entrepreneur to leader

Question 1

List 3 difficulties that entrepreneurs may face whilst moving to a leader

Answer 1

Adapting their mindset
Trust
Sharing ownership + control
Delegation
Stress
Lack of leadership qualities

Question 2

Why will there be greater responsibility to others?

Answer 2

As the business grows, entrepreneurs will have more employees + so more responsibility for others

Question 3

Why is there a need for strategy and vision?

Answer 3

May need to take on specialists to help them with the business but the leader will then need to design the strategy

Question 4

Why is there a need for motivation + inspiration?

Answer 4

As business grows, they need to focus more on the workforce, more people to manage –> entrepreneurs will need to operate as leaders

Question 5

Why is there a need for shared ownership?

Answer 5

When businesses grow they need to fund expansion –> sometimes need to invite new owners to contribute capital

Question 6

Why is there a need for formality?

Answer 6

Small businesses can be run off an informal basis. As the business grows, need for an organisational structure + policies

Question 7

How can entrepreneurs overcome difficulties?

Answer 7

Earning respect
Develop in maturity + experience
Delegation + trust
Education/ training to develop leadership skills