Entrepreneurial leadership and performance of small and medium sized enterprises: A structural equation modelling approach

Abstract

SMEs, if fully developed, would be of benefit in alleviating poverty through wealth and job creation. Thus, developments of SMEs serve as panacea to unemployment. In a developing country like Nigeria, there are several socio-economic conditions impeding meaningful development despite many interventions and policy strategies. However, in Nigeria, SMEs face numerous problems associated with leadership and entrepreneurship. Therefore, this study is aimed to analyse the significant impact of vision, innovation, proactiveness and risk-taking on SMEs' performance in Kano, Nigeria. Descriptive survey research design was used in the study. SPSS 19 and AMOS software were employed to analyse the data. Structural equation modelling (SEM) version 20 was used to arrive at the results of the study. The findings of the research show that there is positive and highly significant impact of vision on SMEs' performance, positive and significant impact of innovation on SMEs' performance. Lastly, the results also show negative and highly significant impact of risk-taking on SMEs' performance. The study indicates that for SMEs' organisation to succeed they must have a clear vision, innovative capacity and ability to take and manage risk.