The Role of Leadership in Business


Leadership is an essential character trait in business. The role of leadership and how it affects businesses and employees is a work in process. Learning to understand where leadership starts and how it affects an organization is the first step in becoming a successful leader.

Managers and Leaders

Leadership in the business world is a multifaceted character trait. Some people have unique personality traits that make them natural leaders. Others can rise up and become leaders when necessary. In business, the first distinction of leadership is to define management. Being a good manager and a good leader are separate roles.


When a person starts a job he begins dreaming of being a manager. While managers are important players in a successful business, often they are not leaders. A manager will work toward specific goals: reducing labor hours while improving efficiency, finding cheaper raw materials and increasing sales. These tasks are important, but the ability to accomplish them is not essential for leaders.


A leader is someone who provides guidance or direction. An entrepreneurs starts a businesses because he has a vision. The vision usually is of filling a need in the marketplace or taking an existing product and refining it. These visionaries never stop looking for an opportunity in the business world. They accomplish their goals through employees in an organization.

How to Lead

Here are some leadership traits.

Have a vision: leaders see potential where others may not. Inspire others: leaders have the ability to get others on board with their vision. Stay the course: leaders will not sway from their vision if they truly believe in it. Rewarding others: leaders will reward those helping him accomplish his vision.

These leadership traits are important to reflect upon when working toward an end goal.

Maximizing Potential

Effective leaders understand that they need others to help them accomplish goals. One cannot lead if no one is following. Leaders will find staff members who are creative and will add to the organizational success of the leader’s vision. A leader will also inspire his employees about his vision, creating an environment where everyone is ready to sacrifice in order to accomplish goals.

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