This study investigates the effect of authentic leadership (AL) on employee creativity and the mediating role of work engagement (WE) and employee task proactivity (ETP) in the context of start-ups. Data collected from 300 leaders and 300 employees of Indian start-ups were analysed using structural equation modelling. The findings suggest that AL has direct and significant effects on creativity and the same is mediated by WE and ETP. For a start-up, it is essential that employees perceive their founders or leaders to have high moral perspective, clear sense of self-awareness and exhibit transparency in their behaviours with their followers. Such behaviours motivate the followers to invest soulfully in their work and do things in a proactive manner, which then leads to creativity. For any start-up to succeed, both a strong form of positive leadership and high levels of creativity from employees are required.
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