A business owner needs to lead through understanding and inspiring people. Unless a business owner has the ability to hire a management team, managing will remain important for the business owner. However, leadership is probably more important because the owner sets the vision and the direction.
What should a business owner do as a leader?
First, establish vision and mission statements that support company's values and cultures.
Second, communicate these elements and gain the support of the staff. Finally, keep hold of the big picture and reinforce the company's values and culture everyday.