We generally tend to see startup business owners as creative leaders, turning up with the plans, managing and directing the team and ultimately taking responsibility for the failure or success of an organization. Plus, up till now, there are infinite examples of businesses with excellent ideas that have unsuccessful because of bad business management, and businesses that have flourished despite reasonable ideas. At least, that’s the overall belief.

However before you put too much pressure on yourself to be some motivating, compelling gift of a pacesetter, let us discover exactly how much the leadership part really plays in to the ultimate success or failure of a business.


First, don’t forget to consider the roles a leader plays in a startup business:

Policy Maker

It’s the leader’s responsibility to come up with new guidelines and new prospects for the business and fix the issues.

Decision Maker

When it comes time to make a difficult decision for the business, the leader is the only who has to take the responsibility and make tough decisions.

Team Builder

The leader recruits, fires and encourages employees to work their best under their supervision.


The business leader is likewise the figurehead of the business and the “face” of the brand.

There are absolutely other duties that a frontrunner performs, however listed here are the leading ones. And all of this is outstanding in theory; however how much of an impact does it really play?

The Systematic Perspective

Based on the Harvard research, the importance of business management or leadership is actually misguided. Examining quarrels starting from leadership and management doesn’t matter in any way to leadership and management is the best thing that matters,” experiential study has proven that what is significant isn’t the consistency in leadership and management at a business so much as the extent to which leadership and management is showed during serious moments.

The Luck Factor

A new research suggested that a leader’s overall performance is not completely computable in terms of their leadership and management aptitude, or attentiveness or every other component that is out-of-the-way. On the other hand, the research proposed, a good sized objective performance can be credited to the results of haphazard aspects.” This research recommended that anywhere from 2-22 % of a CEO’s performance is consistently because of good fortune, based on the industry of the business.

The Startup Difference

Most of the research has ignored one important part of a leadership’s responsibility in a startup. They have focused on the life and death of many other businesses.

However by doing so, the studies did not offer a complete picture of how much a leadership and management matters.

The only reason is that the early phases of a startup are where leadership and management matters the most – before the leader examined in the studies seemed on the picture.

As the leader of a startup business, you are working on undeveloped idea with small team and many other unknowns. The marketplace, the plan and idea, the personnel, even the customs and culture of your business are all still unstable, and being a leader it’s your responsibility to align them.

The Upshot

It’s unquestionable that leadership and management are essential; even the research refer the results of good fortune to only a part of the impact of a leader’s overall performance.

As a leader making or breaking your company is in your hand so make decisions wisely.