The Entrepreneurial Environment ◾ 59
analyze the secrets behind successful founder/entrepreneurs and to improve
your chances of success.
4.2 Leadership Qualities
“Startups are started by leaders.”
Leadership can be dened as knowledge and skills that enable a person
to use reason, power, and inuence to persuade others to follow a desired
course of action. Murphy
discovered that leadership can be dened and
measured as a form of intelligence, exemplied by eight specic roles shown
Visually, some of the most crucial leadership skills found in founder/lead-
ers are depicted in Figure4.3.
4.2.1 Leaders vs. Managers
The major difference between a leader and a manager is behavior patterns.
The ability to raise capital, inspire condence, and nurture the edgling
business is critical to leader-entrepreneurs, not to managers. The differences
between leaders and managers are greatly magnied in a startup organiza-
tion, as noted in Table4.2.
Thus, according to our denition, Lee Iacocca (Ford Mustang), Carly
Fiorina (Hewlett-Packard), and Jack Welch (General Electric) are not
Table4.1 Murphy’s Eight Leadership Roles
1. Select the right people.
2. Connect them to the right cause.
3. Solve problems that arise.
4. Evaluate progress toward objectives.
5. Negotiate resolutions to conicts.
6. Heal the wounds inicted by change.
7. Protect their cultures from the perils of crisis.
8. Synergize all stakeholders to achieve improvements together.