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Ascertaining The Impact Of Leadership Skill On The Growth Of Small Scale Business




This   study    has    investigated    the    leadership    and    worker’s productivity in small scale enterprises/business. The major was to determine the effect of leadership styles on performance in small scale enterprises. Transformational and transactional leadership styles were considered in this study. Transformational leadership behaviors and performance/outcome considered relevant in the study  with   charisma,   inspirational   motivation   and   intellectual stimulation/individual   consideration,   and   effectiveness,   extra effort   and   satisfaction,   respectively.   Transactional leadership behaviors and performance/outcome       variables were constructive/contingent reward  and  corrective/management  by exception;    and   effort,   productivity   and   loyalty/commitment, respectively. The study followed a survey design and employed evaluative quantitative analysis method. Analysis was based on primary   data   generated   through   a   structured   questionnaire Administered   on   respondents.   The   result   showed   that  while transactional  leadership style had significant positive effect on performance   transactional   leadership   style   had   positive   but insignificant  effect  on   performance.  The  study  concluded  that transactional leadership style was more appropriate in including performance   in   small    scale   business   than   transformational leadership   style   and   therefore,    recommended   transactional leadership   style   for   the   small   scale   enterprises   within   built strategies for transition to transformational  leadership style as the enterprises develops, grows and matures.




From time immemorial, mankind has been confronted with the problem of how to effectively make good use of the potentials of nature in association with other human beings. The desire to solve the above stated problem led to the emergence of the concept of leadership, The concept of leadership simply means that there must be someone in charge of a particular activity or activities designed to achieve a stated or certain objectives.

Small scale business suffers from a lot of problems daily and many suffers from it because the leader or boss has never thought of what to do, and how to do what to do in tackling the problems it faces. Specifically, in Aba today small business continues to fail in spite of their role in economic growth and development, studies have over the years found out that failure rate of firms is mainly attributed to lack of leadership ability and capacity of the employee in an organization to deliver maximally. For instance, in Aba, I saw in a business that makes up to 1.5 million naira a day that it couldn’t make up to 300,000 naira in a day if the boss isn’t around, through this I understood that lack of leadership    in    any    organization,    kills    greatly    the    worker’s productivity.

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The importance of leadership is followership. It is the willingness of the followers to follow a person that makes him/her a leader to influence his surbodinates, so that they strive willing towards the attainment of the organizational goals. This can be done through effective communication towards the achievement of group objectives. Therefore leadership is a process for the attainment of goals, through the exercise of influence by one person over another or a group to achieve designed objectives.

Keller, R.T. (2006). Noted that without leadership organizations would constitute an uncoordinated group of people lacking directions. A leader is the most influential person in an organization who provides directions, guide group activist and ensures that group of objectives are attained. The term influences includes power, personal and positional attributes of a given leader. The function of leadership pervades all sections or departments of any organization. A major problem facing small scale businesses in Aba, is that they practice the act of management, but fails to practice leadership or effective leadership. And this in balance has led to the anchor holding down small scale business to still remain small. I noticed that some business owner know how to manage their business to make money, but lack some leadership qualities to sustain the growth of their business. For instance I noticed that small business in Aba lacks the needed leadership qualities to market their product, Blent (2010). noted that lack of leadership skills in staff or employees in organization, comprising of basic skills, motivation and sustainable knowledge and training, effective communication would be hindered when an organization or business lacks the leadership qualifies to market their products business productivity and acceleration would be hindered.

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Leadership effectiveness, therefore determines the success and failure of an organization in relation to some set objective. Organization is a social and economic entity in which different individuals perform quality of functions in order to achieve common goals.

Another problem facing small business is that the employees are allowed to do what they feel is good, but it should be that everyone in an organization should do as occasion demands. That is for an organization to function properly, that is to produce needed goal’s and service for it customers the worker must behave in a way specified by the management to fulfill its aims and objectives.


In recognition of the fact that leadership skills and styles are highly priority to the survival of any business or goals, and are the ends towards which activity is aimed. These represent towards which organizing, staffing, directing and leading and controlling are aimed. The rampant closing up of both small and large business organizations in the recent time have stemmed from mismanagement by leaders due to inefficiency and lack of focus. It is therefore essential that leaders in business organizations are properly trained and educated in other to perform efficiency and effectively for the growth and profitability of the organization.


The major purpose of this study is to ascertain the impact of leadership skill on the growth of small scale business. Specifically, the study aims at.

  1. a) To ascertain how lack of good leadership can affect the growth and profit making of any small scale business organization.

b)To analyze how leadership skills and competence can enhance the growth of small scale business.

  1. c) Identifying some problems affecting effective and efficient leadership in business organization.
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  1. To what extent does lack of good leadership affect the

growth and profit of smaller scale business in Isiala Ngwa


  1. How can leadership skills and competence enhance the growth of small scale business?

iii.  What are the problems affecting effective and efficient leadership in business organization?


A successful completion of this work would enable the researcher and the business world to know the impact of leadership skill in business organization. It would enable business men, firms charitable organizations, churches and profit making organizations, companies and individuals to appreciate the fact of gaining priority education and training of managers or leaders for effective utilization of their skills and knowledge.

Furthermore, it would enable business organizations (profit and non-profit making) to appreciate the significance and impact of leadership skills in term of inducing compliance, focus of group process and achievement, it will also provide useful information to the chamber of commerce, firms, students and various organizations about the impact of leadership skill on business. Finally, it will constitute a useful reference material for the library.


The study covers leadership skills and proficiency of leaders in small scale business in Isala Ngwa L.G.A of Aba Abia state. It also xrays what leading entails which include forward, in ward and outwards of the entire business organization. It also touches on the difference between leadership and management as well as leadership styles. The study will examine water packaging

company, love, joy enterprises and Jay Best wood finish production as case study.


During   the   course   of  this   research,   I   encountered   several problems which includes.

LEADERSHIP SKILL: according to oxford advance dictionary learners it is the ability of an individual (leader) to do something expertly and well.

Pages:  77

Category: Project

Format:  Word & PDF         

Chapters: 1-5                                 

Material contains Table of Content, Abstract and References.


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