The Entrepreneurial School

27 01 2010

The Entrepreneurial School can be described as:  “visionary leadership.”  This school resembles a “process exclusively on the single leader,” based on his/her personality, intuition, and the constructs of them as a leader.

The basic model of the Entrepreneurial School is that of “vision:  a mental representation of strategy created or at least expressed in the head of the leader.”  The vision drives “inspiration and a sense of what needs to be done—a guiding idea,” an “image more than a fully articulated plan.”

Entrepreneurs are all about coming up with new business ideas.

Some premises to be aware of when considering the Entrepreneurial School:

>Entrepreneurs are in “active search for new opportunities.”

>They may think and ask different questions than an administrator, being more focused on opportunities rather than resources and other people involved in decisions.

>Entrepreneurs work in a centralized power structure where authority is in the hands of the CEO.

>They take large jumps even when faced with uncertainties because they have a high drive for achievement and are willing to take moderate risks.

>Often, this visionary leader will need to possess or learn to have “deep knowledge of the subject at hand” in which their ideas and vision point to.

>The leader will require a degree of “experience and intuition” and need to have a vision that is malleable.

Criticisms of this school would obviously include the fact that the “strategy formation is all wrapped up in the behavior of a single individual.”  Being dependent on a single individual can be quite risky.  Also, the entrepreneur does not necessarily address the ‘process’ of their vision or idea, which could make implementing it a difficult task.  Some are critical and give a devil’s advocate position towards the highly achieved, decorated concept of the ‘entrepreneur.’  One such individual is Manfred Kets de Vries, who wrote ‘The Dark Side of Entrepreneurship’ in 1985. Many see the personality of the entrepreneur as potentially being “pathological and demotivating to others.”  Before entering the field, an entrepreneur may want to ask themselves:  Is this business idea, or new way of doing something, for the benefit of others or myself?  Will my drive to achieve come at the cost of hurting others?

As for contributions, the entrepreneur highlights issues of strategy formation, being proactive, and the needed “role of personalized leadership and strategic vision.”  As leaders and visionaries, entrepreneurs have the potential to drive the “emotional and spiritual resources of the organization,” building enthusiasm for the “values, commitment, and aspirations” of a company.  It can be seen as a positive that key decisions are centralized, in the case of the entrepreneur.  Also, when leadership is centralized, the entrepreneur can respond to strategic issues effectively because he/she has full knowledge of the situation.  Also, limited leadership “encourages flexibility and adaptability” because “only one person need take the initiative” in order for change to occur.




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