Abstract
This study examines the influence of entrepreneurial leadership styles on business performance in selected small and medium-sized enterprises (SMEs) in Benin City, Edo State, Nigeria. Leadership styles play a crucial role in shaping business success, affecting key performance indicators such as innovation, employee motivation, efficiency, and productivity. Using a cross-sectional survey design, data were collected from 150 business leaders, managers, and employees through structured questionnaires. The study employs a stratified random sampling technique to ensure proportional representation of transformational, transactional, democratic, and laissez-faire leadership styles.
Primary data were analyzed using descriptive statistics and multiple regression analysis, with the Ordinary Least Squares (OLS) technique used to assess the relationship between leadership styles and business performance. The results indicate that transformational and democratic leadership styles positively influence business performance, fostering innovation and employee motivation, while transactional leadership shows mixed effects. Laissez-faire leadership, however, is found to have a weak or negative impact on performance outcomes.
The findings suggest that SMEs can enhance their business performance by adopting leadership styles that promote collaboration, innovation, and motivation. The study recommends that business leaders undergo leadership development training to refine their managerial approaches and drive sustainable growth.
