Lead by example: As a leader, you must practice what you preach. First, display the willingness to take risks. Second, allow people at different levels to participate. Third, display conviction and take that leap of faith in every decision.
Empower and encourage decision-making: Most companies don’t encourage people to take decisions. It is assumed that if there is a leader, it will be his/her call. At times, there may be several layers that an employee has to pass through till he is finally allowed to voice his opinion. All decisions should be about which idea would win, and not about who should take them.
Don’t punish people for failures: You have to assure your people that they will not lose their jobs if they fail. Otherwise, they will stop taking risks. And in order to avoid major failures, put in place clear boundaries within which people are allowed to take risks.
Make employees feel like owners: All deserving employees must be adequately rewarded and have access to economic benefits. Share ownership with employees by way of ESOPs, for instance. If there is some success in the company, then they must also be able to own that success.
Stay nimble: Business plans and ideas change all the time. An organisation must be flexible and willing to adapt according to the business environment. Nimbleness is the hallmark of an entrepreneurial culture.