Charismatic leadership and entrepreneurial activity: An empirical analysis
Abstract
Entrepreneurship literature frequently identifies entrepreneurs as possessing a charismatic personality. Charisma is broadly defined as a combination of the talent to foresee market
opportunities and the ability to motivate other people in the materialization of these opportunities. Business organizations also provide the context for developing skills and knowledge, which is particularly valuable for potential entrepreneurs who identify business opportunities. Using a sample of 41 countries, we show that higher rates of charismatic leadership at the country level are positively associated with entrepreneurial activity. This outcome suggests that both business-oriented and educational organizations that promote charismatic leadership play a significant role in the development of entrepreneurial incubators.
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