LEADERSHIP STYLES AND SUSTAINABLE PERFORMANCE OF SMEs

Abstract

This study examined the impact of leadership style on sustainable performance of SMEs using SMEs in Benin City, Edo state, Nigeria as a case study. Specifically, it assessed the relationship between the various leadership styles under consideration and the sustainable performance of SMEs. The study also make an extensive inquiry to find out the leadership style that bests promotes the sustainable performance of SMEs. The survey research design was adopted for this study. The population of the study covered all SMEs located in Benin city, Edo state. A total of 100 copies of questionnaire were distributed and utilized for this research project. The distribution of questionnaire copies to owners of SMEs in Benin City, Edo State, Nigeria, employed a cluster and random sampling approach. Utilizing descriptive statistics like frequency distribution, percentages and mean on, the information gathered from the administration of questionnaires was analyzed. Statistical Package for Social Sciences (SPSS) Version 24 was used to do  regression analysis, test the null hypotheses, and estimate the research model. The study found that there is a significant positive relationship between the democratic leadership style and sustainable performance of SMEs. It was found that there is also a positive relationship between the autocratic leadership style and sustainable performance of SMEs. It was found that the laissez faire leadership style also holds a slightly positive relationship with sustainable performance of SMEs. The study pointed out that the democratic leadership style was the leadership style that bests promotes the sustainable performance of SMEs. Recommendations include adopting democratic leadership, evaluating autocratic and laissez-faire approaches, integrating UN Sustainable Goals, training leaders, and enhancing stakeholder engagement. Policymaker support, collaboration, and sustainability awareness were also stressed as essential components for SMEs to foster sustainable practices and business success.