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Developing the skills to run a business require improving leadership skills, which include having a long-term perspective and a future outlook for a business; and improving management skills, which include having a short-term perspective and a present outlook for a business (Nahavandi, 2006). Successfully running a business will require the use of both the skill set of a leader and a manager.

Business exists to make a profit and making a profit has become more difficult in the new global society which raises the question which is better to have a manager or a leader? Businesses in the 21st century need a new kind of leadership. According to Karakas (2007) leaders in the 21st century must deal with global uncertainty, chaos, innovation, change, dynamism, interconnectedness, terrorism, and rapid advances in technology, global warming, complexity and a range of other global social changes.

These changes call for a leader who is a social artist- a leader capable of continually working on themselves and their followers to develop the skills to provide consultation, leadership, and guidance on changing paradigms; a spiritual visionary-who help provide deep meanings, inspiration, and fresh insights about the human condition; and a cultural innovator who advocate and pioneers new ideas, values, artifacts, and lifestyles in society (Karakas, 2007). Therefore deciding what skill-sets a leader should have when leading a business is of critical importance to achieving success in the 21st century.

Nahavandi (2006) lists a focus on the future, an ability to create change, an ability to create a culture based on shared values, an ability to establish an emotional link with followers, and an ability to use personal power to get the job done as skills needed in a leader's tool box; while listing a focus on the present, an ability to maintain status quo and stability, an ability to implement policies and procedures, an ability to remain aloof to maintain objectivity, and an ability to use position power to get the job done as skills needed in the manager's tool box. Determining which skill-set is better depends on what the business need during a certain period of time. Nahavandi (2006) suggests when trying to discern which is better a leader or a manager it is important to remember an effective and successful manager can be considered a leader, but a less competent manager is not a leader. This is a continuing debate that can only be answered

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