5 Leadership Styles Important For Entrepreneurs And Managers

5 Leadership Styles

You’re an entrepreneur or manager of a small or medium company. Congratulations! You have a lot of responsibilities, and one of the most important is leading your team through the inevitable ups and downs of the business. But what’s the best way to do that? There are a lot of leadership styles out there, and not every one is right for you.

In this post, we’ll discuss 5 leadership styles that are important for entrepreneurs and managers alike. We’ll explain what each style is, give examples of how it can be used, and tell you which ones might work best for you.

Leadership is Important for both Entrepreneurs and SME Managers

Leadership is even more critical in startups and SME.

No one is born a great leader—it’s a skill that you learn over time, through practice and mistakes. As an entrepreneur or small business manager, it is important to be familiar with different leadership styles, so you can adapt to different situations and inspire your employees. In this article we will focus on 5 main leadership styles:

  1. Directive
  2. Supportive
  3. Participative
  4. Democratic
  5. Laissez faire

Each style has its own set of benefits and drawbacks, and it’s important to understand which one will work best for your company. For example, if you’re looking to grow your business quickly, a directive style might be the best option. On the other hand, if you want to maintain a more relaxed and creative environment, a laissez faire style might be a better choice.

It’s important to note that no one style is better than the other—it all depends on what you’re hoping to achieve with your business. The key is to be aware of the different options and use them accordingly.

The Directive leadership style


Directive leaders are affine to orchestra directors

Direct or autocratic leaders are dictators—they make all the decisions and give orders to their employees. You may be a directive leader if you’re looking for a sense of order and want everyone to be following the same plan. This leadership style is often selected by hierarchical structures, where a clear line of authority is needed. Leaders establish specific values and behavioral patterns, and others are expected to follow.

If you’re a directive leader, you need to be clear about your expectations and ensure that everyone is on the same page. You’ll also need to be comfortable with making decisions on your own and be able to communicate your vision effectively to others.

The Supportive leadership style

Supportive leaders help and teach their team

A supportive leadership style is important for entrepreneurs and managers of small and medium companies. When you’re the boss, it’s important to be able to give your team the support they need to succeed. That might mean lending a listening ear, providing encouragement, or offering helpful advice.

But being supportive doesn’t mean being a pushover. You also need to be able to make tough decisions when necessary and hold your team accountable. As the boss, it’s your job to set the tone and create an environment where your team can thrive. And that starts with being a supportive leader.

The Participative leadership style

Participate leaders are open to feedback and flexible.

A participative leader is someone who understands that their team has a lot to offer. They’re open-minded and willing to listen to feedback and take advice from their team in order to help the organization or community succeed.

This type of leader is essential for entrepreneurs and managers of small and medium companies. When times are tough, it’s essential to have a leader who is willing to listen and take advice from their team in order to find solutions.

The Democratic leadership style

Democratic leadership gives everybody a voice in the decision making.

Let’s talk about democratic leadership. This is a collaborative style where decisions are based on input from team members. The idea is to get everyone on the same page, so to speak.

Under democratic leadership, strong relationships among team members are encouraged. This type of leader wants everyone to feel like they’re part of the team and that their contributions are valued. It can be a bit more work, but the results can be worth it.

The Laissez-faire leadership style

Sometimes you just need to let your team be and trust their talent.

Laissez-faire leadership is a style of management where the manager takes a hands-off approach. The goal is to give employees the freedom to do their jobs without micromanagement.

Sounds great, right? Well, it can be, but it’s not always a perfect fit. The key to success with this style of leadership is creating an environment where employees feel comfortable taking risks and speaking up. If they’re afraid of repercussion or punishment, then they’re going to be less likely to take initiative.

Managers who use laissez-faire leadership need to be good listeners and be able to trust their employees. And they also need to be okay with not having total control over everything that goes on in their business.

How to Improve Your Leadership Style

It’s important to know the different leadership styles and use them properly, based on the situation and your team. And don’t forget to get feedback from your employees. They can give you valuable insights into what’s working and what isn’t, and you need to be open to that feedback if you want to keep improving as a leader. Otherwise, you’ll start alienating your team and that’s definitely not good for business.


While not all of these leadership styles will work for every entrepreneur or manager, understanding your natural tendencies and using the right style at the right time can be the difference between success and failure.

Knowing which leadership style works best for you is an important step in becoming a successful entrepreneur or manager. Try out a few different styles to see what works best for you and your team.

NOVEMBER 7, 2022


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