12 Important Leadership Qualities + How To Cultivate Them

The qualities of effective leadership grow out of faith in yourself. “You first have to believe that you can do this. You can accomplish it. You are the one to do it,” says Arlan Hamilton, founder of the VC firm Backstage Capital, on Shopify Masters. “That sounds pretty simple, but I get to talk to founders every single day in droves, and many people don’t have that self-belief. Part of that is because they don’t realize how important they are to the whole ecosystem, that their part is so instrumental.”

Workplace culture starts at the top—strong leadership skills like empathy, respect, and accountability build an environment where every team member feels appreciated and invested in their work. Vision and resilience enable smart decision-making to help your business gain a competitive edge in a crowded ecommerce landscape.

Learn about important leadership qualities and how to become an effective entrepreneur who embodies those qualities.

12 leadership qualities for entrepreneurs

• Integrity
• Empathy
• Respect
• Self-awareness
• Communication
• Patience
• Positive outlook
• Accountability
• Passion
• Resilience
• Adaptability
• Vision

A leadership role isn’t just a job title—leadership is a discipline. Effective leadership involves supporting and understanding your team. These are the essential leadership qualities you’ll need to build a healthy workplace culture and make the best strategic decisions for your business:

Integrity

Leading with integrity means sticking to your values and practicing ethical decision making—even if you don’t think anyone is watching. Integrity helps leaders gain trust and respect. When your actions align with your stated values, followers will see you as authentic and reliable. Acting with integrity may inspire others to follow suit by making smart and transparent professional decisions.

Empathy

Leaders can demonstrate empathy by listening to employee concerns and making an effort to understand their point of view. This quality helps leaders build relationships and establish emotional connections with their teams. Empathetic leaders consider the potential impact on employees before making decisions. Arlan learned the value of empathy while interviewing founders for her VC firm. She explains on the podcast, “Everybody has a story to tell. Everybody has something interesting and compelling about themselves, and we’re all connected.”

Respect

Respect is the bedrock of a positive workplace culture. Treating employees with respect supports morale and builds trust. Respectful communication can also help leaders navigate tension and resolve workplace conflict. To demonstrate respect, leaders treat team members fairly and avoid favoritism. Establishing an inclusive work environment helps ensure employees from every demographic feel comfortable in the office.

Self-awareness

Self-aware leaders possess a strong sense of their personal strengths and weaknesses, and the effect they have on others. With this quality, leaders will be able to recognize when it’s time to seek a second opinion or delegate tasks. Self-awareness can also help leaders grow—recognizing your own shortcomings is the first step toward improvement.

Communication 

Clear communication helps avoid confusion and misunderstandings. Leaders use communication skills to explain major decisions, set clear organizational goals, and provide important company updates. Effective communication skills can also help your team achieve its goals; providing employees with information and context enables them to do their best work. Communication is a two-way process—great leaders practice active listening and make team members feel heard.

Patience

Mistakes happen. Patient leaders accept this fact and show understanding when employees need a helping hand. Leaders can practice patience by maintaining a calm demeanor in the face of setbacks. Instead of assigning blame, patient leaders work with their team and provide the guidance they need to reach their goals.

Positive outlook

Leaders champion their company and their employees. Maintaining a positive attitude shows employees you believe your company will succeed. This can inspire confidence and help keep morale up during hard times.

Accountability

Accountability is the practice of owning your actions and following through on your word. Accountable leaders accept responsibility for their mistakes and make good on their promises. Practicing accountability shows team members you’re reliable. Establishing a culture of accountability can encourage employees to take ownership of their work and complete projects.

Passion 

Passion is a powerful motivational tool. Passionate leaders have genuine enthusiasm for their companies—they believe in their mission and aren’t afraid to show it. This contagious energy can inspire employees and stir excitement. Genuine passion helps keep team members motivated. Arlan addresses the importance of passion, saying, “If you have this incredible, unique view of the world and a strong opinion and willingness to execute, even if others are telling you that you’re crazy, then that’s the makings of an incredible founder.”

Resilience 

In Arlan’s opinion, “having a certain drive and grit and resilience is incredibly important because no matter what you’re working on, it’s going to change a little bit or completely pivot within the first three years.” Every company faces setbacks. Great leaders stay strong in the face of adversity. Leaders can practice resilience by moving on and finding the best path forward after missteps. This practice helps employees retain faith during uncertain times.

Adaptability 

Successful leaders thrive on change. Adaptability helps businesses respond to shifting circumstances and overcome challenges. As Arlan explains, “It’s not just changing your mind, it’s evolving and forming a new opinion. Hopefully, we are all evolving as data presents itself.” Adaptable leaders embrace new ideas and are willing to adjust operations as needed.

Vision 

A strong vision can help unite your team with a shared goal. A leader’s vision represents the company’s ultimate ambitions. It encompasses what you hope to accomplish and the impact it could have on the world. Effective leaders communicate a compelling vision to inspire and motivate followers.

Leadership styles

Good leaders may share essential qualities, like vision, communication, and passion, but the results vary depending on individual personality and leadership style. Leadership qualities are values that guide daily interactions. Leadership style describes your approach to task management, decision making, and delegation. Numerous styles can be effective when combined with strong leadership skills. These are some of the most popular styles: 

• Autocratic leadership. Autocratic leadership is a rigid and authoritarian style. These strong leaders practice unilateral decision-making and expect employees to follow rules without questioning.

• Bureaucratic leadership. Bureaucratic systems use rules and standard operating procedures to create order. Leaders make major decisions and rely on lower-level managers to supervise daily tasks. 

• Coaching leadership. Coaching leadership prioritizes employee development. Leaders give employees individual attention and the support they need to develop their skills. 

• Democratic leadership. Democratic leadership, or participative leadership, takes a collaborative approach to management. Leaders partner with employees and incorporate team members’ contributions into major decisions. 

• Laissez-faire leadership. Laissez-faire leaders take a hands-off approach to management. This style grants employees a degree of autonomy and offers little oversight. 

• Servant leadership. Servant leadership prioritizes employee satisfaction. Leaders provide individual attention and take the time to understand employee needs. Servant leadership requires strong emotional intelligence.

• Transactional leadership. Transactional leadership uses rewards and consequences to encourage certain behaviors. Leaders use these incentives to motivate teams.

• Transformational leadership. Transformational leaders use vision to inspire their employees. This style encourages employees to take big risks in pursuit of organizational goals. 

How to develop leadership qualities 

• Ask for feedback
• Reflect on your experiences
• Set goals
• Study other leaders

Good leaders practice continuous learning and are always looking for ways to grow. Try these leadership development tips to hone your style:

Ask for feedback

Ask your coworkers, reports, peers, and managers to assess your leadership abilities and provide feedback. Reviewing their honest opinions can help develop self-awareness and identify areas for improvement. Consider constructive feedback carefully and look for opportunities to change your approach. 

Reflect on your experiences 

Think about a recent workplace challenge or conflict. What went well? What didn’t? Ask yourself if there’s something you could have done differently to achieve better results. Try out this new approach next time a similar situation arises. 

Set goals

Write down a few goals to hold yourself accountable. Goals may focus on areas for improvement or new challenges you want to take on. Set a timeline and keep track of your progress. 

Study other leaders 

Identify a few influential leaders you admire and research their techniques. Biographies, podcasts, and interviews are excellent resources for learning about leadership. Pay attention to which leadership characteristics resonate with you—this may help you find your leadership style.