The Efficacy of Leadership on Success of a Startup

Abstract

The purpose of the research is to analyze how self-leadership, transformational leadership, and transactional leadership apply to startups, and how they make a startup successful. This research defines the three different types of leadership and discusses the influence of impact of founders and leadership on the startups. Self-leadership is different from the other two types of leadership in meaning and function since it exists in the personal attributes and personality of the leaders or founders. It is a strategy for leaders' requirements and management of themselves. However, transformational leadership and transactional leadership are different ways that leaders treat or motivate followers. The difference between application of transformational leadership and transactional leadership is that the leaders with transformational leadership promote the innovation and passion of followers by agreeing with their goals and ideas, but the leaders with transactional leadership stimulate followers' efficiency and work quality by rewarding who with high work efficiency and punishing who have not completed their work. This study indicates that these three different leadership strategies apply to certain startups.