ENTREPRENEURIAL LEADERSHIP STYLES AND ORGANIZATIONAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN NIGERIA

Abstract

This study investigates the impact of entrepreneurial leadership styles on the organizational performance of Small and Medium Enterprises (SMEs) in Nigeria, with particular focus on financial and innovation performance as key indicators of competitiveness and sustainability. Employing a quantitative research design, data were collected from 371 owner–managers of SMEs across Lagos, Rivers, Abuja, and Kano states using a structured questionnaire. Data analysis was conducted using descriptive statistics, Pearson correlation, and multiple regression techniques to examine relationships and predictive effects. The results demonstrate that entrepreneurial leadership exerts a significant and positive influence on both financial performance (β = .62, p < .001) and innovation performance (β = .68, p < .001). Findings indicate that behaviours such as opportunity recognition, proactiveness, strategic risk-taking, and employee empowerment are critical drivers of organizational success within the Nigerian SME sector. The study concludes that SMEs led by entrepreneurial leaders are better positioned to attain competitive advantage, enhanced profitability, and sustained innovation. Based on these insights, it recommends targeted leadership development programs, capacity-building initiatives, and policy interventions to strengthen entrepreneurial competencies among SME leaders in Nigeria.