Leadership Style and Organisational Effectiveness: A Survey of Small and Medium Enterprises in Enugu State

This research explores the relationship between leadership styles and organisational effectiveness among small and medium enterprises (SMEs) in Enugu State, situated in Nigeria's South East geopolitical zone. SMEs constitute the backbone of Nigeria's private sector economy, yet many struggle with weak internal management structures that hinder sustainable growth. This study adopts a descriptive survey design with data gathered from 130 respondents including business owners, managers, and senior staff across twenty registered SMEs. The primary instrument is a validated questionnaire adapted from established leadership behaviour scales. Analytical tools include frequency distribution, mean scores, and multiple regression. The study examines three leadership styles: transformational, transactional, and laissez-faire, assessing their respective effects on productivity, employee retention, and innovation outcomes. Results show that transformational leadership has the strongest positive association with organisational effectiveness, particularly in stimulating employee creativity and improving team cohesion. Transactional leadership was found to support short-term productivity targets but showed limited impact on innovation. Laissez-faire leadership correlated negatively with most effectiveness indicators. These findings reinforce recent theoretical advances in leadership studies that advocate adaptive, people-centred management approaches. The study recommends that SME owners in Enugu invest in leadership development training and adopt participatory management practices to improve operational outcomes. Keywords: leadership style, organisational effectiveness, SMEs, transformational leadership, Enugu State.