Leadership and work environment in small and medium-size companies

Abstract

Leadership in small and medium-sized enterprises (SMEs) has been a topic of growing interest in business research, as it is related to better financial results, higher employee satisfaction, and lower staff turnover. SMEs represent a large number of companies around the world and are often considered the engine of the economy in many countries. The objective of this study was to analyze how leadership in SMEs influences the work environment and employee performance. The methodology was quantitative, while the paradigmatic approach used was positivist, likewise, the method used was analytical-relational and cross-sectional of the field, using a questionnaire with a Likert scale. The results obtained show an ineffective leadership. 52.4% of the employees disagree or strongly disagree with the leadership, while 63.0% of those consulted maintain that the work environment is unfavorable or very unfavorable. The lack of effective leadership has led to a negative organizational climate. It is suggested that companies establish strategies that will strengthen leadership and improve the work environment of their organizations.