LEADERSHIP STYLES AND ENTREPRENEURIAL PERFORMANCE OF SELECTEDSMALL AND MEDIUM ENTERPRISES IN KADUNA STATE

Abstract

Small and medium enterprises (SMEs) are widely recognized as critical contributors to economic growth, job creation, and innovation, particularly in developing economies like Nigeria. In Kaduna State, SMEs have played a pivotal role in driving economic development, significantly contributing to
employment generation and the state’s GDP. This study explored the relationship between leadership styles and entrepreneurial performance among SMEs in Kaduna State, Nigeria. A descriptive research design was employed, utilizing stratified sampling to collect data from respondents. Questionnaires were administered to employees of selected SMEs, with a total population of 452. Stratified and simple random sampling techniques were applied within each stratum, and a sample size of 212 was determined, with an additional 20% margin of safety included. Data were analyzed using inferential statistics and regression analysis at a 5% significance level to test the study’s hypotheses in alignment with its objectives. The findings indicated a statistically significant and positive correlation between transformational leadership and business growth among the selected SMEs in Kaduna. The study concluded that leadership styles play a crucial role in influencing the performance of SMEs in the
region. It was recommended that SME management adopt transformational leadership practices to promote innovation, enhance employee engagement, and ensure long-term business growth. By
inspiring and motivating employees to align with a shared vision, leaders can cultivate a culture of creativity and strategic thinking. Training programs and workshops on transformational leadership practices should be implemented to equip leaders with the skills necessary to foster innovation and adaptability within their organizations.