Entrepreneurial Leadership and Performance of Small Scale Enterprises in Nigeria

Abstract

The study examined the effect of entrepreneurial leadership on the performance of small scale enterprises in Nigeria. The study’s specific objective was to ascertain the extent to which situational entrepreneurial leadership and innovative entrepreneurial leadership affect operating efficiency. Descriptive survey research design was used in the study. The study pupation comprised 71,288 small-scale enterprise operators in Nigeria. Since studying the entire population was impractical, a sample size of 399 was determined using the Taro Yamane formula at a 5% margin of error. Primary data were gathered through a structured questionnaire designed using a five-point Likert scale. Multiple regression analysis was used to test the hypotheses. The study found the following: situational entrepreneurial leadership has a positive and significant effect on operating efficiency of small scale enterprises in Nigeria (β = 0.304, p = 0.000); innovative entrepreneurial leadership has a positive and significant effect on operating efficiency of small scale enterprises in Nigeria (β = 0.418, p = 0.000). In concussion, entrepreneurial leadership is not just a managerial attribute but a critical factor in optimizing operations within small enterprises, which often struggle with limited resources and volatile environments. The study recommends owners and managers of small-scale enterprises in Nigeria should actively adopt situational entrepreneurial leadership by tailoring their leadership approaches to suit specific business conditions, employee capabilities, and emerging challenges. This involves assessing each situation independently and responding with the most appropriate leadership behavior, whether directive, supportive, or delegative.