The Impact of Leadership Style on Entrepreneurial Success in Small and Medium-Sized Enterprises Operating in the Food and Beverages Sector in Nigeria

Abstract

This paper examines the effect of leadership style on entrepreneurial success in small and medium-sized enterprises (SMEs) operating in the food and beverages sector in Nigeria. The study aims to shed light on the relationship between leadership style and key indicators of entrepreneurial success, including profitability, revenue growth, market share, product/service innovation, and customer satisfaction. A sample of 1000 SME owners in the food and beverages sector was hypothetically considered for the analysis. The literature review provides a comprehensive overview of the relevant theoretical perspectives and empirical studies on leadership styles and entrepreneurial success. Transformational leadership, transactional leadership, and laissez-faire leadership are identified as the primary leadership styles of interest. The literature suggests that transformational leadership, characterized by inspirational vision, employee motivation, and innovation stimulation, is positively associated with entrepreneurial success indicators. Transactional leadership, emphasizing task-oriented directives and performance rewards, is expected to have a more limited but positive impact on specific indicators, such as customer satisfaction. In contrast, laissez-faire leadership, characterized by a passive or hands-off approach, is generally considered ineffective in driving entrepreneurial success. The proposed methodology involves the use of a survey instrument to collect data on leadership style and entrepreneurial success indicators from the sample of SME owners. The survey instrument will include validated scales to measure leadership styles and a combination of objective and subjective measures to assess entrepreneurial success indicators. The data will be analyzed using statistical techniques, including correlation analysis and regression analysis, to examine the relationships between leadership styles and entrepreneurial success. The anticipated results will provide insights into the extent to which different leadership styles impact entrepreneurial success in SMEs operating in the food and beverages sector in Nigeria. The findings can inform SME owners, managers, and policymakers on the most effective leadership approaches to adopt in order to enhance entrepreneurial success. The study's contributions to the existing body of knowledge and its implications for practice and policy will be discussed in detail. Finally, recommendations for SME owners will be provided based on the findings to guide them in effectively utilizing leadership styles to drive entrepreneurial success in the food and beverages sector in Nigeria.

Keywords: Leadership style, entrepreneurial success, small and medium-sized enterprises, food and beverages sector, Nigeria.

DOI: 10.7176/EJBM/15-12-08

Publication date:June 30^th 2023