As costs for higher education increase and traditional state appropriations formulae, in which dollars follow student/semester credit hours, are often no longer in use, educational institutions are being asked to provide higher quality services with flat or even slightly reduced budgets. To meet these needs, department chairs and deans need to combine traditional leadership qualities with an entrepreneurial spirit. Traditional leadership requires strategic thinking, removing obstacles, developing ownership, and taking self-directed actions to move institutions ahead. Entrepreneurs must be able to take risks, assess input, and make decisions, and they should have courage, a competitive spirit, intuition, and the ability to make good decisions with incomplete information. Further, entrepreneurial leaders must quickly assess situations, build consensus, visualize a plan, communicate the plan, and seek the necessary resources to implement the plan. Leaders must also push their faculty to demonstrate more initiative, risk-taking, and resourcefulness. While leaders should strive to consolidate their power in difficult times, they must balance this with efforts to properly delegate responsibility within the institution. Finally, entrepreneurial leaders must be supportive of those higher up in the institution, and they must foster a willingness to provide superiors the benefit of the doubt about their decisions. (MAB)