LEADERSHIP STYLES AND PERFORMANCE OF SMALL SCALE BUSINESS ORGANIZATIONS
(A STUDY OF SELECTED SMALL SCALE BUSINESSES IN ENUGU URBAN)
ABSTRACT
This research work examined Leadership styles and Performance of Small Scale Business Organizations, A study of Selected Small Scale Businesses in Enugu Urban. The objectives of the study include to: find out the extent leadership style has affected the performance of the selected small business organizations, determine the benefits of adopting effective leadership styles in the selected small business organizations and ascertain the challenges militating against adopting effective leadership styles in the selected small business organizations. The major instrument of data collection was the questionnaire. The sources of data were the primary and secondary sources. The population of the study was 79 while the sample size of 79 was determined by applying the rule governing population and sampling. The data collected was presented in tables of frequencies, percentages using the five point likert scale. The hypotheses were tested using the chi-square distribution formula. The findings included that Leadership style has a significant effect on the performance of selected small business organizations, There are benefits of adopting effective leadership styles in the selected small business organizations and There are challenges militating against adopting effective leadership styles in the selected small business organizations. The research concluded that leadership style has a significant relationship with performance of small scale business organizations and it was recommended that management of small business organizations should always adopt effective leadership style as it has an effect on the performance of their organization, the leadership style adopted by small business organizations should always consider the employees in the decision making process of the organization and management of organizations should always align employees’ objectives with organizational objectives in their leadership style.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1     Background of the Study                        
1.2     Statement of the Problem                        
1.3     Objectives of the Study                         
1.4     Research Questions                            
1.5     Statement of Hypotheses                         
1.6     Significance of the Study                        
1.7    Scope of the Study                             
1.8    Limitations of the Study                        
1.9     Operational Definition of Terms                    
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework of the Study                
2.1.1 Concept of Leadership and Leadership Style        
2.1.2 Characteristics of Leadership Styles                    
2.1.3 Determinants of Leadership Style                      
2.1.4 Types of Leadership Style                        
2.1.5 Concept of Organizational Performance            
2.1.6 Concept of Small Business Organization            
2.1.7 Classification of Small Business Organization        
2.1.8     Features of Small Business Organization            
2.2     Theoretical Framework of the Study                
2.2.1 Servant Leadership Theory                        
2.2.2 Spiritual Leadership Theory                         
2.2.3 Authentic Leadership Theory                     
2.3     Empirical Review                             
2.3.1 The Extent Leadership Style Has Affected
the Performance of the Selected Small Business
Organization                                
2.3.2 The Benefits of Adopting Effective Leadership Styles
in the Selected Small Business Organizations        
2.3.3 The Challenges Militating Against Adopting Effective
Leadership Styles in the Selected Small Business
Organizations                                 
2.4 Summary of Review of Related Literature            
2.5 Gap in the Review of Related Literature            
CHAPTER THREE
METHODOLOGY
3.1    Research Design                            
3.2    Sources of Data                            
3.2.1    Primary Sources                            
3.2.2 Secondary Sources                            
3.3    Area of the Study                            
3.4     Population of the Study                        
3.5    Sample Size Determination                     
3.6     Instruments for Data Collection                
3.7    Validity of the Instrument                     
3.8    Reliability of the Instrument                    
3.9     Method of Data Presentation and Analysis        
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1    Data Presentation and Analysis                 
4.2    Bio-Data                                    
4.3     Data Relating To Research Questions            
4.3.1 Research Question One                        
4.3.2 Research Question Two                        
4.3.3 Research Question Three                        
4.4    Test of Hypotheses                            
4.4.1 Test of Hypothesis One                        
4.4.2 Test of Hypothesis Two                        
4.4.3 Test of Hypothesis Three                        
4.5    Discussion of Findings                         
4.5.1 Discussion Based on Hypothesis One            
4.5.2: Discussion Based on Hypothesis Two            
4.5.3: Discussion Based on Hypothesis Three            
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2     Conclusion                                 
5.3     Recommendations                             
5.4    Contribution to Knowledge                     
5.5    Suggestions for further Research                
List of References                             
Appendix A                                
Appendix B                    
CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
    Leadership is a special type of influential activity. It may be seen in all kinds of social situations, and it is especially apparent where the situation demands that people work together towards common goals (Babatunde, 2013:80). In organizations leadership is a managerial activity, the purpose of which is to direct the employees in one immediate chain of command towards the accomplishment of work goals.
    To Ikenga (2014:90), leadership represents a combination of behaviours exhibited by one who occupies an elected, appointed or designated position of influence in a social system. Leadership behaviour is therefore officially sanctioned, either formally or informally and the leader is looked upon for guidance and direction by those who recognize his or her power.
    Most firms and businesses consist of employers and employees or put differently, management and staff or leaders and followers. In order to achieve their objectives, there must be an interaction between employers and employees. As Eskilden (2011:76) stated, one of the determinants of employee satisfaction is employees’ perception of their job and the organization for which they work for and employees’  perception of leadership behaviour is an important predictor of employee job satisfaction and commitment.    
    In the words of Morris (2012:51), leadership style can either motivate or discourage employees, which in return can cause employees’ increase or decrease in their level of performance. Employee performance is an important building block of an organization and factors which lay the foundation for high performance must be analyzed by the organization. Although many factors may influence the performance of an organization, there can be little doubt that the quality of leadership available to it will be one of the most critical determinants of ultimate success. Leadership behaviour plays a very important role in enhancing employee job satisfaction, work motivation and work performance. Hence, in most organizations, tremendous efforts and resources have been expended, with varying degrees of success, to identify and develop personnel who will occupy the positions of leadership needed to meet present and future organizational requirement.
    The future economic prosperity of Nigeria, lies in the dynamism and growth of small business organization. This is the unanimous opinion of an economic dialogue at the instance of three bodies. The Nigerian institute of social and economic research (NISER), the National Association of small-scale industrialists (NASSI) and the Fredrick Ebert foundation, held recently in Lagos. In other words, small business organizations constitute a vital engine to economic growth and development. The experience all over the world is that small business organizations play a significant role in the Linkage of the various sectors of the economy.
    Small business organizations occupy a place of pride in virtually every country or state. Because of the significant roles small business organizations play in the growth and development of various economies, they have been aptly referred to as “the engine of growth and catalyst for socio-economic transformation of any country (Okoye, 2012:66). Unfortunately, it is argued that small business organizations in Nigeria do not apply effective leadership style in their day-to day activities. Hence, this research work examined leadership styles and performance of small scale business organizations, using a survey of selected small scale businesses in Enugu Urban.
1.2    Statement of the Problem    
      The consequences or effects of not adopting effective leadership style in the management of small business organizations, has led to increase in mortality rate of small scale business. Small business organizations are known to have high mortality rate. When effective leadership style is not adopted, the mortality rate will increase.
    Another effect of not adopting effective leadership style in small business organization, is that it leads to decline in sales turnover of the small scale business. This is because, the employees may not be motivated or committed, as a result of not being comfortable with the leadership style (Bello, 2013:87).
    Furthermore, another effect of not adopting effective leadership style in small business organizations, is that it leads to fall in the net profit of the organization. This is because, when the employees are not committed to achieving organizational objectives, as a result of bad leadership style, the profitability of the organization is usually affected.
1.3    Objectives of the Study
    The broad objective of the study is to examine leadership styles and performance of small business organization. However, the specific objectives include
1.    To find out the extent leadership style has affected the performance of the selected small business organization in Enugu Urban.
2.    To determine the benefits of adopting effective leadership styles on the selected small business organizations in Enugu Urban.
3.    To ascertain the challenges militating against adopting effective leadership styles in the selected small business organizations in Enugu Urban.
1.4    Research Questions
1.    To what extent has leadership style affected the performance of the selected small scale business organizations in Enugu Urban?
2.    What are the benefits of adopting effective leadership styles on the selected small business organizations in Enugu Urban?
3.    What are the challenges militating against adopting effective leadership styles in the selected small business organizations in Enugu Urban.
1.5    Statement of Hypotheses
The following hypotheses were formulated based on the research questions.
Hypothesis One
H0:    Leadership style does not have a significant effect on the performance of selected small business organization in Enugu Urban.
H1:    Leadership style has a significant effect on the performance of selected small business organizations in Enugu Urban.
Hypothesis Two
H0:    Loyalty and commitment of the employees are not the benefits of adopting effective leadership styles on the selected small business organizations in Enugu Urban.
H1:    Loyalty and commitment of the employees are the benefits of adopting effective leadership styles in the selected small business organizations in Enugu Urban.
Hypothesis Three
H0:    Subordinates and leaders expectations are not the challenges militating against adopting effective leadership styles in the selected small business organization in Enugu Urban.
H1:    Subordinates and leaders expectations are the challenges militating against adopting effective leadership styles in the selected small business organizations in Enugu Urban.
1.6    Significance of the Study
This research work is very important because it examines leadership styles and performances of small business organizations. The managers and owners of small business organizations will benefits from this research work, because they will be more enlightened on the effective leadership styles to apply in the management of their organizations. The researcher will benefit from this study, as the research work is a pre-requisite for graduation. The various institutions of higher learning will benefit from this research work as it increases their data banks. The research work can also serve as a springboard for further research.
1.7    Scope of the Study
The small business organizations covered include: Emily Restaurant Ltd Ogui Road Enugu, Nice and More Ltd C TO C Plaza, and Next and Vogue Apparel Boutique Enugu.
This research work covered the extent leadership style has affected the performance of small business organizations, the benefits of adopting effective leadership style in small business organizations, the challenges militating against adopting effective leadership style in small business organizations and to proffer solutions to those challenges. The time scope is between 2016-2017.
1.8    Limitations of the Study
The researcher encountered some impediments in the course of carrying out this research work. They include: time, insufficient fund and uncooperative attitude of the respondents.
Time: Given the short time allowed, it was not easy combining the lecture time and the time allocated for this research.
Insufficient Fund: There are no enough fund to do all that was required
Uncooperative Attitude of the Respondents: the small scale business owners were economical with information. They thought the researcher was a tax collector sent by the government to ascertain the financial position of their businesses. But when they confirmed that the research work was for academic purpose, they gave out useful information relevant for the research.
1.9    Operational Definition of Terms
Leadership: This can be defined as that kind of direction, which a person can give to a group of people under him in such a way that these will influence the behavior of another individual, or group
Leadership Style: is viewed as the combination of traits, characteristics, skills and behaviours that leaders use when interacting with their subordinates.
Performance: This can be defined as the accomplishment of a given task measured against preset known standards of accuracy, completeness, cost and speed.
Small Business Organization: Any business whose investment capital or total costs of total assets does not exceed one hundred thousand naira (N100.000) and employing not more than one hundred (100) employees.