Effective entrepreneurial leaders can motivate and inspire. They can develop a community from a disparate group of strangers. Success of the venture depends largely on whether leadership can develop a vision and convince internal stakeholders to adhere to this vision. Employee buy-in is necessary and effective entrepreneurial managers can develop this by making sure every employee has a clear understanding of their role in the business. The effect entrepreneurial leadership has on their employees can be significant, especially for a small business. Effective leaders know this and employ various managerial styles to achieve the best effect on personnel. The following six leadership styles were determined by a study of over 4,000 managers (Murray 2010).

• Visionary leaders motivate employees to work for a vision.
• Coaching leaders foster a relationship with employees based on trust.
• Affiliative leaders create harmony within the organization based on emotional bonds.
• Democratic leaders develop buy-in through participation.
• Pacesetting leaders set challenging goals and expect excellence.
• Commanding leaders demand immediate compliance.

Murray, Alan. The Wall Street Journal Essential Guide to Management: Lasting Lessons from the Best Leadership Minds of Our Time. New York: Harper Business, 2010.

Review these styles and identify which one you feel you would like to embody as the owner/manager of a small business. Why do you think this would be work best for you? What are the pros and cons of this style?