Leadership Styles and Growth of Small and Medium Enterprises in the Central Region of Uganda

Abstract

Over decades there has been growing concern on leadership style and growth of SMEs in Uganda. The study sought to establish the leadership styles that were employed by leaders in SMEs in the Central region Districts and examine how they affected growth in these enterprises. The study adopted a parallel descriptive mixed methodology to enable collection of quantitative and qualitative data. It also employed a correlational research design and it enabled in-depth understanding of the variables under investigation.  Epistemological and ontological stance was employed that posted in positivism philosophy to aid the study and enabled triangulation approach. Total of 349 research participants were purposively engaged in the study and study and these included leaders and proprietors ‘of SMEas and managers of 123 SMEs in Uganda. Primary and secondary sources of data were collected using interviews. Focused group Discussions and surveys. The study revealed that there is a positive relationship between directive, coaching and supportive leadership styles, and growth of SMEs. The Pearson correlation Coefficient and Regression Analysis were obtained in analyzed data.  The study also revealed that delegating leadership had a negative relationship with growth of SMEs. It concluded that a mix of directive, coaching and supportive leadership led better growth results in SMEs in Uganda. It further discovered that many SMEs are initiated but due to inappropriate management they are short lived. The study recommended leadership training for leaders in SMEs to develop a mix of leadership skills and competencies. It also recommends employee skilled professionals and continuous monitoring of development of SMEs to enable them better. It also recommends for having strategic business plan and internal control practices to support leadership of SMEs in Uganda