Analyzing Start-up Britain and Leadership Theories

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Leadership and Entrepreneurship
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LEADERSHIP AND ENTREPRENEURSHIP
Table of Contents
Introduction................................................................................................................................3
Task1. Entrepreneurial opportunities by Start-up Britain..........................................................4
Importance and process of entrepreneurship in the United Kingdom....................................4
Knowledge and understanding of Start-up Britain in supporting business............................5
Advantages and disadvantages...............................................................................................6
Role and effectiveness of Start-up Britain in the development of sustainable business........7
Task2. Leadership Theory..........................................................................................................8
Situational theory...................................................................................................................8
Analysis, application and critique of F. Fielder’s Leadership model....................................9
Leader’s trait......................................................................................................................9
Situational factor................................................................................................................9
Leadership efficiencies.....................................................................................................10
Generic consideration.......................................................................................................11
Conclusion................................................................................................................................13
References................................................................................................................................14
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Introduction
Start-up Britain is a national campaign that was launched with the purpose to spread
awareness among the new and small-scale businesses. The campaign has succeeded in
providing useful advice to people who seek for receiving information on business plans and
ideas. The project will discuss the abilities of Start-up Britain and how it supported the
British entrepreneurs in developing their business. Moreover, it will also be discussing the
process and importance of entrepreneurship in the United Kingdom.
As situational leadership theory is flexible and easily adapts to the present work environment,
the leaders of the organisation can use this theory to understand the management style to suit
the needs of the organisation. The project will examine the F. Fielder’s Leadership model
with generic consideration on J. Johnson’s Cultural web model.
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Task 1. Entrepreneurial opportunities by Start-up Britain
Importance and process of entrepreneurship in the United Kingdom
The job market in the United Kingdom is increasing day by day. The UK government has
made a structure for business development by presenting specific support to every
entrepreneurial business that is capable enough. The significance of entrepreneurship in the
United Kingdom is increasing in each passing year, with small-scale businesses that are
playing a crucial role in enhancing both the community and the economy. The small business
and start-ups arena creates a massively important contribution to the UK economy. The UK
government has boosted funding for business strategy to increase the UK’s productivity
(Saridakis, Iskandarova and Blackburn, 2016). The Government Business Productivity
Review (2018) has addressed the administration abilities and focused on the role of good
management and leadership to attain economic growth and prosperity. After the 2018 budget
got released, it was confirmed that the UK government will persist to discover the uses and
opportunities of Artificial Intelligence. Moreover, they have also explored how this particular
technology and collection can be utilised.
The entrepreneurial process in the United Kingdom is strong but territorial unbalanced. The
UK executed relatively good as compared to different European economics particularly in the
entrepreneurial system of liberalised markets, strong knowledge and science, deep official
economic markets and an influential legacy of fortification of intellectual property rights
(IPR). The process of starting a new business in the UK requires company register as per the
law so that the company can develop its business ideas to attain its target audience. This
guide provides useful tips to them who seek to start their own company in the United
Kingdom. The process includes essential steps that must be taken care of before becoming
self-employed.
 At first, it is important to check that the business individuals legally enter about
beginning their own business.
 Secondly, it is necessary to write a proper business plan.
 Thirdly, they should decide on their business official structure.
 It is required to select a business address and a name.
 In case, the individuals of the business are UK entrepreneur then they need to place up
as a Limited Company (Mastrogiacomo, Hochguertel and Bloemen, 2016).
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 Then, they need to register with the HM Customs and Revenue.
Figure: Entrepreneurship in UK
(Source: Mastrogiacomo, Hochguertel and Bloemen, 2016)
Knowledge and understanding of Start-up Britain in supporting business
Start-up Britain was founded by a team of eight entrepreneurs with a motive to inspire
enterprise in the United Kingdom. It is a national campaign which was started on March 28,
2011, by David Cameron who was the Prime Minister during that time. This campaign is
entirely financed by private division sponsors and with the support of the Government and
the Chancellor. It is run individually from the centre’s major movements but participates in
joint research and reports to inform and shape policy. Besides, the campaign arranges a
yearly summer bus trip which has tripped over sixty British cities and towns. It runs yearly
tech, finance and marketing weeks where professionals in these industries allocate their
experiences. They also organise one-day affairs which include Start-up Fashion, Start-up
Entertainment and Start-up Food to provide guidance on how to succeed in such sectors
(Smith and Clegg, 2017).
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Start-up Britain supports the business by aiming to gain growth by inspiring, accelerate and
rejoicing the talent of Britain's start-up. Overall, Start-up Britain delivers a profit package that
signifies more than $1,500 in cost for each start-up in Britain. They provide special discounts
on free broadband, insurance, office space, free advertising and so on. Start-up Britain
sustains business every year by providing opportunities to new businesses that want to
become self-employed. They focus to become a champion for 270,000 businesses in the UK.
The Government has also supported this campaign as they too want new businesses to start
on every town and cities; and where entrepreneurs are present everywhere. The Start-up
Britain’s face is an exceptional web portal that points the process to a few resources that are
obtainable for business owners. It is the first portal to collect the resources together in a
single place and enables new companies to evaluate the package of maintenance assured to
Start-up Britain from global markets.
Advantages and disadvantages
Advantages: The Start-up Britain assists the growth of a sustainable and adaptive business
model which provides certain benefits to the new business. These are:
 Start-up Britain helps new business to open its industry in any location in the United
Kingdom. This campaign provides them details on how they will get access to
completely new clientele and location. The new company can become more defiant to
unforeseeable events.
 It diversifies the service and products of new business in Britain. Start-up campaign
helps to adjust to a new location that gives entrance to new markets by an asset of
geography, asserting the range of goods and services (Hartmann et al. 2016).
 The campaign further helps small businesses to learn about their competition so that
they can understand the situation suitably. If a new company does not have adequate
knowledge of how their competition performs in the market hen will naturally face
problem to contend with them efficiently.
 Start-up Britain also allows new businesses by promoting business both online and
offline. With the rise of technology, it is a better opportunity for small businesses to
develop and expand their company’s name. People will start identifying them if they
can make an online presence. Additionally, offline sources can also help these
businesses to spread knowledge.
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Disadvantages: There are some disadvantages connected with Start-up Britain that is
internationally practicable and resilient. These are:
 Start-up campaign needs more time and a huge effort. A successful campaign requires
smart materials and if they fail to provide the correct materials then the entire business
may shatter.
 It needs accurate violation which is the biggest criticism on this campaign. A high
valuation might create a problem for new businesses as an overstated valuation may
hold more impartiality in the short term, but it may also likely to be realistic that
might lead to down round (Peel, 2016).
Role and effectiveness of Start-up Britain in the development of sustainable
business
Start-up Britain plays an important role in the development of a sustainable business. They
motivate every potential entrepreneur to chase their dreams. This initiative helps new
companies to slew programs so that they can abridge the method of ‘starting-up. They help
the businesses to evaluate themselves so that they can understand their goals and objectives
more accurately. These companies can also make a proper estimation of the amount of wealth
they require to start a new business. Moreover, it helps them to plan a business idea on the
advanced technologies that will be needed to solve the bugs for the customers. The
individuals of the company start applying their skills to a completely new field to test their
capabilities.
Start-up Britain has been successful in providing support to the British entrepreneurs in their
growth of sustainable business enterprises (Peel, 2016). The new businesses benefit from this
campaign as it runs marketing movements where they share ideas and experiences in
handling business. Start-up Britain's Pitch Up proposal has inspired well-known brands like
Sainsbury and John Lewis to recognize pitches that come from new companies while over
350 small agents have experiences on employing for available shops units with the Pop Up
United Kingdom scheme.
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Task 2. Leadership Theory
Situational theory
The situational theory supports the sustainability and development of an international
business organisation. This theory refers to those particular leaders who accept various
leadership styles as per the situation and the growth level of their group members. This is an
efficient method of leadership as it accepts the requirements of the team and then sets
favourable stability for the entire organisation. Situational leadership theory is the model of
options for organisations globally that want to establish rapport, develop people and utilize
general leadership styles. There are mainly two conventional models of this theory that is
Paul Hershey and Ken Blanchard and another is Daniel Goleman (Hefferan and Fem, 2018).
Hershey and Blanchard’s situational leadership: This model is mainly based on the
activities done by Hershey and Blanchard. Their idea is to discuss about two ideas that
discuss about the leadership and the growth level of the people. The four styles are:
 Telling leaders: Such type of leaders make a proper decision and then communicates
them to the newcomers.
 Selling: These leaders make objective and roles for people.
 Participating: Here the leaders share and facilitate their decisions to the people who
follow them.
 Delegating: These leaders provide guidance and let others perform their task.
Daniel Goleman theory on situational leadership: This model describes six styles of
situational leadership. They are:
 Educating leaders: They work on developing an individual's personal growth with
that of job-related abilities.
 Pacesetting: These leaders set high prospects for their adherents. Start-up companies
can get motivation from this style (Mäkäräinen-Suni, 2017).
 Democratic: In this style, leaders provide their followers with a vote in every
decision.
 Authoritative: They are very good at identifying and analyzing challenges.
 Affiliative: These leaders value their employee more and are utilized when self-
esteem is low.
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 Coercive: These leaders guide their subsidiaries on what to do and not an emergency
situation.
Analysis, application and critique of F. Fielder’s Leadership model
Fred E. Fielder's Leadership model states effective leadership which depends just not only on
control of the situation but on the style of leading. Fielder’s contingency theory focuses on
the leader's psychological disposition or on their personality. According to him, if a business
tries to attain group efficiency through leadership, then there is also the necessity to assess the
organisational leader according to a fundamental trait, construction of appropriate match and
assessing the condition faced by the leader (Thompson and Glasø, 2015).
Leader’s trait
Fielder widened the LPC (least preferred co-worker) scale to identify the people with whom
the leader does not prefer to do work. It is basically a questionnaire that consists of sixteen
items which are used to imitate a leader’s attitude towards others. The LPC scale include
items like unpleasant/ pleasant/unfriendly/ gloomy/ boring/ cheerful/ and so on. Moreover,
each point in the scale has been provided with a single ranking from one to eight points to
specify the most constructive rating.
Friendl
y Unfriendly
8 7 6 5 4 3 2 1
Fielder explains that a leader that has high LPC points is affiliation-oriented and a leader with
low LPC points is job-oriented. High LPC leaders obtain most contentment from
interpersonal relations and hence assess their least preferred colleagues in quite favourable
terms. These leaders start thinking about performance achievement only after the
requirements of the relationship are well gratified (Alwan, Jones and Holgate, 2017).
Contrary, the leaders with low LPC get satisfaction from the presentation of the job and
accomplishment of purposes. These leaders work to set up good interpersonal and social
relationships.
Situational factor
The behaviour of a leader relies upon the convenient of the leadership situation. Fielder
described three factors which decide how constructive a situation is for a leader when they
are worked together. These are:
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 Task arrangement: This determines the degree to which the organisation’s task has
been depicted as unstructured or structured.
 Relationship between leader and member: It determines up to what extent a leader is
liked and trusted by the team members and the compliance of the team members to
pursue the leader's guidance (Rappaport and Miles, 2017).
 Position power: It describes the leader's power by an asset of the position in the
organisation and the extent to which a leader applies authority on team members so
that they can obey and recognizes his leadership quality and direction.
These three variables helped Fielder to identify the leadership style.
Figure: Connection between group effectiveness and LPC scores
(Source: Lai, Saridakis and Blackburn, 2015)
Leadership efficiencies
The effectiveness of the leader is decided by the communication of the leader's behavioural
style and the constructiveness of the situational features. The most positive situation is when
a leader and member share good relation, highly structured project and strong position
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authority. The task-oriented leaders are efficient in both highly unfavourable and favourable
situation while the leaders those are relation-oriented are more efficient in situations of
transitional favourableness. So, it can be said that Fielder’s leadership model can prove to be
very helpful for start-up companies.
Generic consideration
The Cultural Web model by J. Johnson presents an approach to look and change the
organisational culture. By using this model, start-up companies can depict cultural practices
and assumptions, and also set to a job supporting organisational factors with each other and
with the business strategy (Thompson and Glasø, 2015). J. Johnson has recognised six
elements that are diverse but are interconnected elements that contribute to the model of the
work environment that is called as “paradigm”. The factors of the Cultural Web model are:
 Stories: These are discussed by people from inside and outside the organisation which
are sometimes correct and sometimes inaccurate past events. What and whom the
organisation selects to celebrate say a lot of thing about what it mattered, and
observes as good behaviour.
 Symbols: This element is the visual depiction of an organisation on how they emerge
to the individuals and workers externally. The symbols might include dress codes
both formal and informal or logos.
 Routines and Rituals: This refers to everyday behaviours and actions of people inside
the organisation (Rasool et al. 2015). This element helps in determining the thing that
is expected to occur in particular situations and also the thing valued by
administration.
 Structure of the organisation: It refers to the structure and hierarchy of the
organisation chart. It also refers to the power that is in unwritten form and influence
that specify the individual's contribution which is valued more.
 Control systems: This control system gives the ways by which the organisation is
managed. It may include quality systems, financial systems, and rewards.
 Power structure: It refers to the executives like the board members, the CEO or the
group of managers those have the highest power within the organisation. They hold
influence on final actions, decisions or important changes.
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Figure: Cultural Web elements
(Source: Morris, 2017)
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