Business Leadership: Definition, Types, Importance, Examples and MORE

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Being a leader requires several fundamental characteristics, especially if it is a work environment. Therefore, it is important to know about the Business leadership, its definition, types, examples and more.

This, since having the correct tools you can guide and take your company to the next level. Would you like it?

Here we tell you how. Keep reading!

What is Leadership?

Leadership can be defined as the set of abilities, capacities and skills that a person has to lead a group and positively influence its progress.

It is also a way of being that easily manages to influence and direct a group or work team. Therefore, a person with leadership promotes interaction between people, which requires the intervention of multiple emotional factors that must be managed and controlled to achieve the progress of the organization.

What is Business Leadership?

After knowing the first definition, the Business leadership. Most of the time, it is detected by the senior executive or manager of the company, who are the main ones who capture the will of the various employees to understand and get involved with the company.

Likewise, those who demonstrate key leadership characteristics are usually included with the direction of the company and are open to accepting advice and suggestions, recognizing both command capacity and organizational and directive aptitude.

In other words, whoever is a business leader manages to unite individual wills to go for the benefit of the company. All this, without neglecting the sensitivity and motivation of the people involved and guaranteeing the security of success within the source of work.

What is a leader?

Although we have already defined some of its essential characteristics, a leader is a strategist, tactical, intelligent, motivated person with the ability to assume the leadership of teams seeking to meet the proposed objectives.

Therefore, they must have a broad capacity for command, empathy, ease of communication and ease of working under pressure.

Likewise, it is highlighted that there are several types of leadership, which vary according to many factors, some of them such as the level of sensitivity with people, with the objectives and if it is weak or acute.

Types of Business Leadership

Visionary leadership

These leaders are identified by keeping their focus clear and setting common goals that lead the corporation down more feasible and effective paths. They are recognized for their creativity and resourcefulness in conflict resolution and are often self-critical and demanding of themselves.


Although this is a matter of personality, a charismatic leader is capable of naturally captivating and building relationships with great ease. It is characterized by enthusiasm, closeness, empathy and the contagion of positivism within the work team.

For these reasons, these leaders can promote better work environments by being part of the soul of an organization. They are role models of inspiration and have excellent communication skills.


These people have the innate ability to guide their subordinates from a clear strategy that is prepared in detail in advance.

Their leader profile is firm and they are characterized by being responsible, committed and punctual without losing quality. At the same time, they show a high degree of demand with the work that is given to them and they stand out detecting talents and abilities in other people to assign them the most appropriate task.

In managerial business leadership, the individual seeks that his subordinates within the positions work as a team and are motivated to achieve the goals and objectives.


The fundamental quality in this type of business leadership it is knowing how to share knowledge to help develop all activities or to solve problems. Likewise, it is sought to accompany the process with advice, demonstrations, clear instructions or examples.
Coaching leaders identify themselves as accessible people who adjust to working together, know how to guide perfectly and avoid making any kind of distinctions, even favoring feedback.

Democratic or participatory

This has a joint responsibility between the collaborators and the leader. In this way, they can generate new ideas, provide the necessary confidence and give the required freedom to decide. Here we try to encourage the participation of all with a possibility of listening.


Regarding this leadership, it must be said that it focuses on carrying out actions immediately. Likewise, it makes everyone carry out the orders perfectly and therefore can come to be considered as a type of leadership with rigorous supervision.


On the other hand, an autocratic leader is one who makes relevant decisions and maintains control over the various strategies and work dynamics. Generally, he sets the guidelines himself and this can make him look like one-way leadership, where subordinates are only there to follow his instructions.


As its name implies, it is a leadership with information exchange processes, generally of an economic nature. Here, incentives are given to employees when they bear fruit and reach the objectives, both in sales and in customer service. Thus, profit-by-profit transactions are carried out, that is, transactional.


In this type of business leadership, constant and clear communication is maintained with the members of the work team, which benefits the process to meet shared objectives.

Thus, an increase in empathy is generated, which translates into greater chances of success.


This leadership functions as a position of evaluation and recognition of the level of preparation of the work team.

It stands out for embracing different leadership styles depending on each work situation or problem, as well as for evaluating each of the skills shown by the collaborators. It is important to mention that this leader promotes everyone’s intervention and two-way communication.

Natural leadership

When talking about natural business leadership, we are talking about people who have innate abilities to lead various groups. Thus, he assumes this role spontaneously, without pretending to have a position of authority. This is done by someone close, so their peers often approach the person for recommendations and directions.

Among the most notable characteristics are the following: great group communication skills, empathy, charisma, extroversion, emotional intelligence, high spirits and positivism as well as high intention of participation.

Importance of Business Leadership

As leadership is a key piece to achieve the objectives and goals of your company, it increases effective results on the part of the team and fosters better work environments.

During 2020 and according to a Deloitte report, it was shown that if a company wants to create a greater sense of belonging among its members and employees, they must generate stronger bonds that boost organizational performance, strengthen relationships and encourage the impression of contribution.

The exploration made last year also shows that, while the institutions hope to find new group leaders, they continue to promote structures and patterns of conservative thinking.

Therefore, it is necessary that the same organizations seek and help the leaders that they have in their teams to develop their skills and in this way boost the brand and avoid being left behind in the accelerated change that is experienced in the business environment.

Importance of a leader

Likewise, as a leader it is necessary that you adopt new or other approaches that manage to broaden your vision and help you achieve the objectives in the middle of the context or scenario, using the critical competencies.

Finally, it is fair that you take into consideration that as an entrepreneur you also have to be a leader with intelligent thoughts, creativity, negotiation skills, and the ability to create, direct and guide various work teams.

All of this does not mean that there is only one suitable personality type. to assume leadership or be a leader, no. There are really multiple styles, each with its own characteristics and strengths.

Example of Business Leaders

After sharing all the above information, it was time to talk about some personalities who have shown that they were born for him. Business leadership.

Next, we present who they are and why they are distinguished in the field of companies and businesses.

Sheryl sandberg

She enters the role as a great natural leader, as her abilities as Facebook’s chief operating officer demonstrate that she has the perfect set of skill, dominance, power, and influence among those around her.

As it should always be, she uses her leadership skills in favor of the other team members, so much so that she started the Lean In initiative, which supports other women entrepreneurs and businesswomen. Likewise, she is recognized for facing gender standards and roles with character.

Ray croc

For his part, McDonald’s CEO Ray Croc is a direct example of a transactional leader. He managed to integrate into his organizational techniques the system that many companies continue to use to this day, known as “the employee of the month”.

Thus, it always seeks to highlight that individual or those collaborators or employees who fulfilled their activities in an excellent or outstanding way compared to others. However, although it can be seen as a punishment when the rest of the team is not recognized, it serves for motivation and incentive.

Frederick W. Smith

Finally, the founder and CEO of FedEx is another that adds to our list of examples. Smith is described by his surroundings as a motivating man with a great human sensitivity towards his staff.
You can stand out as a charismatic leader, even by being kind to others. This is because during the first 20 years of the company’s existence, Smith never laid off any of its employees.

Thank you for reading!

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