This study investigates the impact of leadership styles on the business performance of Small and Medium Enterprises (SMEs) in the Federal Capital Territory (FCT) Abuja. The study aims to examine the influence of autocratic, democratic, and transformational leadership styles on SME performance in the region. Survey research design was utilized for the study. Data were collected through a questionnaire survey administered to SME owners and managers in various industries within the FCT Abuja. The questionnaire measured respondents’ perceptions of leadership styles and business performance using Likert scale items. Data was analysed using descriptive and inferential statistics. The findings reveal significant relationships between leadership styles and business performance among SMEs in FCT Abuja. Contrary to initial hypotheses, autocratic, democratic, and transformational leadership styles were all found to have significant effects on business performance. Autocratic leadership demonstrated a positive influence on performance, while democratic and transformational leadership styles also showed significant relationships with performance. The study’s implications underscore the critical role of leadership in shaping the success of SMEs in FCT Abuja. The findings highlight the need for SME leaders to adopt a balanced leadership approach that incorporates elements of autocratic, democratic, and transformational leadership styles. Moreover, the study emphasizes the importance of fostering a culture of employee involvement, empowerment, and innovation within SMEs to drive performance and competitiveness in the market. Based on the study’s findings, recommendations are provided to support SME leaders in enhancing business performance.
Keywords: Autocratic, Business Performance, Democratic, Leadership Styles, transformational leadership styles.
