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The Role of Transformational Leadership in Successful Entrepreneurs

By SimoneNo Comments

Leadership is a connection of influence between leaders and followers who want to produce tangible results and changes that represent their common goals. A strong leadership style can make the difference between a successful and unsuccessful firm.

Most people, however, do not take into account the work that goes into figuring out which strategy a leader should use in order to have the greatest influence. In the 21st century, the necessity for a new concept of leadership positions has resulted from the gradual alteration of entrepreneurship under the strain of variables such as innovation, the informatization of the environment, and the requirement for socializing the relationships between businesspeople and society.


The political professor James McGregor Burns first used the phrase "Transformational Leadership" in 1978. A leadership approach motivates followers or employees to make a positive change. Transformational leadership is based on a participative process and intrinsic motivations, through which leaders inspire followers to self-identify with the organizational vision and objectives. Transformational leaders are characterized by an active, enthusiastic, and passionate approach to their work and their interactions with their brands.

The workers and followers of the leader will experience more significant support and greater autonomy in carrying out their tasks as a result of behaviours based on transformational leadership. Additionally, each person will encounter a new challenge when the transformational leader allocates duties based on the abilities and requirements of employees and followers, which will help them grow and create.

To differentiate themselves from the competition and carve out a niche for themselves, entrepreneurs are strongly recommended to employ this leadership style while launching their new products or service. Knowing how to be a leader can be challenging, especially if you want to be honest and keep control. Most leaders believe that in order to be taken seriously, they must present a persona. They fear that their staff will not like them if they are too honest.

Teams may have trouble reaching their potential without fully authentic leadership. They could be unable to create or solve difficulties because they lack the ability to think outside the box. Inspiring their team members and assisting them in coming up with solutions is how transformational leaders do it. They put a lot of effort into getting to know their staff members and assisting them in realizing their full potential.

It has been identified that charismatic and transformational leadership theories suggest a close relationship between leadership, organizational change, and entrepreneurship. Charismatic (transformational) leaders, according to Conger and Kanungo (1998), "are by nature entrepreneurial and change-oriented."

It is clear from the term "transformational leadership," which has been associated with encouraging change and creativity in businesses and has a broad definition that includes resulting in the transformation of either individual followers or entire organizations.

So How Do You Employ The Transformational Leadership Style?

The "four I's," are often known as the main elements of transformational leadership. These consist of:

  • Idealized Influence
  • Inspirational Motivation
  • Individualized Consideration
  • Intellectual Stimulation
Transformational Leadership

What Do The Four I’s of Transformational Leadership Mean?

Idealized Influence maps to Authenticity

Idealized influence is how transformational leaders impact a group, because of the example they create for others, these leaders are held in high regard by their team.

Beyond this, they offer a distinct vision and a sense of community that inspire people to support the organization's long-term aims and motivates them to reach their own aspirations.

As a result, they serve as strong role models, and those who admire them try to emulate them in an effort to follow in their footsteps and become leaders themselves.

Inspirational Motivation maps to Insight

When being an entrepreneur, it is essential to have all hands on deck and have your team motivated and feel belonged working towards the organizational objectives, which can be done through Inspirational Motivation. Inspirational motivation can be achieved by using motivational strategies to boost team morale and serving as an example for their followers, transformational leaders play a crucial part in enhancing performance.

The leaders are pleased to convey to each of their followers their high expectations and inspire them on a personal level in order to win their allegiance to a common organizational goal or team belief. Employees will emulate having a strong sense of purpose and a “mission mindset” to achieve their goals.

Intellectual Consideration maps to Coaching

Individualized consideration is the process of identifying people and giving them a motivating force to succeed within the organization. Leaders are coaches or mentors to their employees which is extremely important while being an entrepreneur to convey your goals and vision to your employees for a united path towards success. Employees are encouraged to perform at their maximum levels. Strong questions are posed to promote development and critical thinking. Individual diversity is cherished and honoured.

Individualized Stimulation maps to Innovation

In an endeavour to improve the company, managers who provide intellectual stimulation encourage critical thinking and problem-solving. Part of being a leader is providing intellectual stimulation to enhance the work environment and foster critical thinking and problem-solving among the team. Regardless of what autocratic leaders may believe, it should not be on the leader to make every decision or every strategy. Instead, transformational leaders understand the importance of providing the resources for their team to perform their job to the best of their ability.

How To Apply Transformational Leadership In Your Workplace?

Adopt these qualities in order to develop your leadership style and affect your workplace:

  1. Self-awareness: Recognize your own advantages and disadvantages and how to effectively apply them to help those around you.
  2. Authenticity: To foster a culture of trust, be sincere and honest with yourself, your team, and the company.
  3. Vision: Establish challenging targets that will assist in steering the business in the proper direction.
  4. Empathy: Get to know your team members and treat them with consideration, compassion, and understanding. Encourage employees to think creatively and take calculated risks by rewarding them for doing so.
  5. Transparency: Keep a level of transparency throughout the company with employees. When you are open to changes, visions, and new directions, your team members can contribute their skills and ideas. Make your goals clear so that your team can work towards achieving them.

Adhering to these transformational leadership principles may inspire and stimulate your team's creativity.

What Are The Characteristics of a Transformational Leader?


Transformational leaders persevere through challenging circumstances and overcome hurdles without quitting easily. Transformative leader keeps working until their vision is accomplished when they have faith in it. Finding the best solution can involve making a point of learning from errors and attempting novel concepts.


Leaders who are ever-learning and remain modest, maintain an open mind and value their staff members' and organizations' opinions and input. These leaders think that other people can contribute. They understand that admitting to their errors is essential to finding effective solutions.

Time Management skills

People with this leadership style know what is necessary to get the best results. These people are able to inspire and motivate others by drawing on their own inherent drive. They are skilled at setting priorities based on what will yield the best results.

Risk assessment skills

After having their team undertake extensive research on market trends, statistics, and analysis, these executives take calculated risks. Before deciding the advantages of a risky scenario, they consider the opinions and recommendations of others.

Power sharing

Transformational leaders frequently think that their success as an individual is a result of the success of their organization as a whole. They don't feel the need to micromanage because they assign tasks to reliable workers.


Successful companies may seek strategies to evolve in order to become more effective and relevant to their customers.

Transformational leaders frequently plan for long-term, ambitious goals. They concentrate on fulfilling the company's overarching vision. These executives prioritize tasks in a way that supports the company's objectives.

What Are The Benefits of an Entrepreneur Employing Transformational Leadership?

Low Turnover costs

A transformational leader aims to meet both their needs and the organization simultaneously. This keeps employees engaged and decreases the cost of staff turnover because everyone feels they have a specific role to perform in the team.

Gets Staff Engaged

In order to create ways to motivate individuals to perform their best job, transformational leaders are good at identifying the requirements of their followers.

Drives Change

Companies must be open to change if they want to get better. Employees that are guided through change are enthusiastic about new initiatives. If they are personally invested in the process that leads to everyone realizing their potential, they can sell the idea of changes more effectively.

Visionary skills 

Planning for the future is a strong and effective skill that a transformative leader possesses. When their company shares this vision and recognizes how they fit within it, they are an effective leader.


Entrepreneurs who practice transformational leadership share and inspire their company's vision with their employees and instill the company's values and beliefs in them. To develop respect and pride in their employees for being a part of the company, entrepreneurs must project a sense of strength and confidence in operating their businesses.

Additionally, motivating staff to consider other approaches to completing tasks and conduct problem-solving. Finally, entrepreneurs devote time to training, mentoring, and building the skills of their team. Thus, it can be concluded with confidence that through providing guidance, developing structures and activities, and fostering relationships among groups, transformational leaders support organizational learning and substantially impact learning and knowledge implementation.

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