The Impact of Leadership Styles of Small Business Owners/Managers on Firm Performance

Abstract

This study sought to investigate the impact of leadership styles of owners/managers on firm performance in small, medium and micro enterprises (SMMEs) in Lesotho. Leadership is widely regarded as an important management function in pursuing the goals of a firm to success. However, literature on the subject reveals that not much research has been done on the relationship between the leadership styles of SMME owners/managers and firm performance in the African context. Using qualitative method and open-ended questionnaire, data were collected from 10 SMME owners/managers in Maseru, Lesotho. The results support the argument that there is positive correlation between the application of leadership style and firm performance of SMMEs in Lesotho. This qualitative approach to the study is important because it has revealed SMME owners/managers leadership styles and their influence on firm performance.