The Impact of Leadership on Entrepreneurship and Innovation: Perceptions of Entrepreneurs

Abstract

The study examines the impact of leadership on entrepreneurship and innovation. It is found that leadership impacts the potential of the entrepreneur, and the (entrepreneur as) innovator. Leadership also impacts entrepreneurship and innovation through a number of practical aspects. The impact of leadership on entrepreneurship is strongly dependent on the definition of leadership, and the measure used to assess leadership. Leaders and entrepreneurs, and also leaders and innovators, share a number of common skills and competencies. The entrepreneur naturally and inadvertently develops leadership skills and competencies as he develops and matures. Consequently, the development of the entrepreneur can be enhanced and accelerated through the development of leadership skill and competency. Strategic leadership forms an important aspect of entrepreneurship. A number of factors, like culture and market, impair the power and influence of the entrepreneur. It is the entrepreneur as a strong leader, who is able to rise above this. Leadership as a concept is not always fully understood by entrepreneurs, and it impacts the performance and success of entrepreneurs. Recognition of leadership and fear of failure are prominent factors that impair leadership, and consequently entrepreneurship success. Innovation can be seen as exerting influence over a context, etc., in order to shape it. Leadership and leadership process form part of innovation method and thereby affect the sustainability of innovation and innovativeness. Leadership equally affects the effectiveness and accuracy of innovation, and leadership helps to manage and direct the uncertainty associated with the innovation process.