Entrepreneurial Leadership and Its Challenges in Talent Acquisition and Retention for Startups

Entrepreneurial leadership is crucial for the growth and success of startups, yet it also presents several challenges in talent acquisition and retention. This study examines these challenges using the Fuzzy DEMATEL method, which analyzes complex cause-and-effect relationships. Key challenges identified include risk-taking, overemphasis on innovation, inconsistent decision-making, lack of structured processes, and high workload expectations, all of which negatively affect employee retention and engagement. The Fuzzy DEMATEL analysis reveals causal relationships between these challenges and their impact on organizational stability. The study involved 56 respondents, including CEOs, founders, and HR managers of IT startups in Chennai. The findings emphasize the need for entrepreneurial leaders to balance innovation and risk-taking with stable HR practices to enhance talent acquisition and retention. The study offers practical recommendations for addressing these challenges, helping entrepreneurial leaders create a supportive work environment that fosters long-term employee commitment and it contributes valuable insights to the field of entrepreneurial leadership and talent management in startup contexts.