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The role of the leader is to work with people through his cooperates in order to achieve the goals of the organization. For that aim, he has to understand the human behavior and to be capable of communication, in order to motivate the lead other peoples. The function of management consists of the capability to influence the behavior of individuals and groups on their work. Today's global business conditions expressed through strong and relentless market competition, technological, information and communication advances and changing consumer behavior, are making difficult the market fight of small and medium enterprises (SMEs). In such difficult conditions for business operation, tangible resources (financial, technological, physical and organizational) are increasingly losing their primacy compared to the invisible (human resources, innovation, reputation) ones. Among invisible, human resources are becoming more important for the survival, growth and development of these enterprises. In order to be a major source of competitive advantage, human resources need to be proactively managed. These points out the need for a leader with charisma, knowledge, skills and abilities in order to lead the employees in achieving the mission, vision and goals of the enterprise. In this point of view, charismatic leader is one that has influence, inspires, motivates and instills confidence among followers. The charismatic leader, thanks to the characteristics that he possesses and which differ him from other leaders, is the key factor for the business success of SME. Keywords: leader, charisma, power, influence, ethics, competitive advantage, small and medium enterprises
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