LEADERSHIP STYLES AND ENTREPRENEURIAL EMPLOYEE PERFORMANCE OF SELECTED SMALL AND MEDIUM ENTERPRISES IN KADUNA STATE

Abstract

Small and Medium Enterprises (SMEs) are vital to economic development, contributing significantly to job creation, innovation, and GDP growth. However, Nigerian SMEs encounter numerous challenges, such as limited access to finance, inadequate infrastructure, and managerial inefficiencies, which impede their growth and sustainability. This study investigated the relationship between leadership styles and employee performance in SMEs located in Kaduna State, Nigeria. A descriptive research design was adopted, and data were collected using stratified sampling. A structured questionnaire was administered to employees from a total population of 452 across selected SMEs. Stratified and simple random sampling methods were applied, yielding a sample size of 212, with an additional 20% included for safety. Data were analyzed using inferential statistics and regression analysis at a 5% significance level to evaluate the study’s hypotheses and objectives. The findings revealed a statistically significant and positive correlation between democratic leadership and employee satisfaction in the selected SMEs in Kaduna. The study concluded that democratic leadership fosters employee satisfaction by encouraging inclusivity, empowerment, and responsiveness. Based on these results, it was recommended that SME managers adopt democratic leadership practices to enhance employee satisfaction. Promoting participative decision-making and nurturing open communication within teams can strengthen employees' sense of ownership and accountability, ultimately improving customer service delivery.