EFFECT OF LEADERSHIP STYLES ON HUMAN CAPACITY BUILDING AND SUSTAINABLE MANAGEMENT OF SMES IN ENUGU STATE, NIGERIA

Abstract

This study examined the effect of leadership styles on human capacity building for sustainable management of SMEs in Enugu, South-east Nigeria. The methodology adopted by this study was survey research that used validated questionnaire to collect data from five sample units: SMEDAN, Enugu Zonal Office, Bank of Agriculture (BOA), Enugu, SME Centre, Enugu, SME Cluster, New Haven Enugu, and Emene Industrial Layout SME Cluster, Enugu. The population for the study was 4,252, out of which a sample of 353 was drawn using Cochran’s finite population correction factor (fpcf) technique. In the said survey, the structured questionnaire that consisted of 21 close-ended research items set on the 5-point Likert-type scale was used to collect data from the study’s respondents. Results of the reliability test carried out on the said questionnaire showed a Cronbach’s Alpha index (CAI) of 0.82, which was considered high enough and good for the study. The respondents for the study were chosen using purposive sampling technique which allowed only the senior staff of the agencies with good knowledge of leadership, human capacity building, entrepreneurship and sustainable development. Descriptive statistics comprising frequency units, tables and percentages was used in analyzing the data, while the three hypotheses of the study were tested using Multiple Regression Analysis, all with the aid of SPSS software. Descriptive statistics comprising frequency counts, tables and percentages was used in analyzing the data. The three hypotheses put forward by the study were tested by use of One-Way Analysis of Variance (ANOVA) and Student t-test. It was the finding of the study that autocratic leadership style had no significant positive effect on the stock of technical skills, knowledge and competencies possessed by employees of SMEs; that laissez-faire leadership style had no significant positive effect on the stock of entrepreneurship managerial skill possessed by employees of SMEs; and that transformational leadership style had no significant positive effect on the efficiency or output levels of employees of SMEs in Enugu, South-east Nigeria. Finally, the study recommended greater emphasis on use of transformational leadership style as opposed to autocratic and laissez-faire styles; greater emphasis on regular training, formal education and putting in place effective mentoring programmes.