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New challenges to the contemporary business models appear with introduction of the new technologies and speeding up the technology transfer within worldwide industrial chains. As the business model in the economic developed countries is based on the increasing role of research and science intense companies that leads to increasing competitiveness, the business model in the developing countries is not well enough sufficient to be part of this knowledge based economy. So, the biggest challenge for competitiveness and growth of developing countries is to improve the social leadership model as a compensation of less innovations.So, the basic goal of the paper is to present a challenging approach of leadership business model, that is suitable for application in the developing countries. The Bulgarian example helps to introduce not just the advantages but to present the hidden obstacles of generating growth in knowledge based economy. Thus, the structure of the paper is: 1. Introduction to the knowledge based economy model; 2. Management and leadership approaches in knowledge based economy description; 3. Existing leadership models in Bulgaria; Conclusions.