Factors affecting effective Leadership in Small and Medium Scale Enterprises

This research project explores the factors that affect effective leadership in small and medium-sized enterprises, including issues faced by SMEs in terms of leadership management and the relationship between leadership factors and SMEs. Small and medium-sized enterprises face challenges such as lack of effective communication, insufficient leadership skills, and limited resources, which have a direct impact on their success and growth.

RESEARCH PROJECT
(Factors that affect effective Leadership in
Small and Medium Scale Enterprises)

ABSTRACT
The study will outline the proper understanding of the various factors which are connected with
the with leadership with small and Medium Scale Enterprises. In addition to this, the study will
also highlight the issues faced by small and medium scale enterprise in terms of leadership
management. Furthermore, the research will also ascertain the connection between small and
medium-sized businesses and leadership factors.

Table of Contents
ABSTRACT.....................................................................................................................................2
CHAPTER 1: INTRODUCTION....................................................................................................4
Overview about the topic........................................................................................................4
Research aim, objectives and questions.................................................................................5
Research rationale..................................................................................................................5
Significance of the research....................................................................................................6
Research problem...................................................................................................................6
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
What do you mean by elements of leaderships which affect the small and medium scale
enterprises?.............................................................................................................................7
Explain the issues faced by small and medium scale enterprise in terms of leadership
management?..........................................................................................................................8
What is a link between leadership variables and small and medium-sized businesses?......10
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................12
CHAPTER 4: DISSCUSSION......................................................................................................15
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................19
REFERENCES..............................................................................................................................22

CHAPTER 1: INTRODUCTION
Overview about the topic
The chosen topic is leadership in the present study and it is defined as the most important
factor that help individuals to make productive decisions, set objectives and in providing
direction within a professional working environment. Leadership is needed in every business
in order to set and attain challenging goals, take decisive and fast decision when needed,
outperform the high competition and motivating others to perform at the best level. It is the
leader of the business that help in achieving the predetermined objectives of the business in
an effective manner. They guide and assist employees of the company in understanding their
roles and responsibilities so that employees work in an effective and efficient manner. A
leader is a person who motivates and inspires employees of the business by giving them
certain financial and non-financial incentives in order to gain high profitability and growth
(Diamantidis and Chatzoglou, 2018). Small and medium enterprises are defined as business
organisations that maintain assets, revenues or a different number of employees below a
certain threshold. Leaders are needed in small enterprises also because they help in
introducing various policies and plans and results in gaining high success and growth. With
the help of good and effective leadership they can create a vision and can help in motivating
people to make it a reality within the competitive business environment. It is the
responsibility of the leader to guide and inspire employees for working in a more efficient
and effective way in order to gain high profitability and productivity. It is mainly defined as
an essential function of management that helps the company in directing their resources for
accomplishing goals and increased efficiency. There are several factors that help the leader in
gaining popularity and support from the employees of the business. Organisational culture,
technology, employee role and many more are defined as some of the factors that affect
leadership in relation with the small and medium enterprises (Kim, Kim and Jeon, 2018).
Leadership has a direct impact on the performance and productivity of the company as this
helps in providing the right direction to the employees working towards achieving the pre-
defined aim and objectives. In the highly competitive environment, it is important for the
company to select and recruit leaders that have the ability to influence employees for
working effectively for increased growth. The study will outline the various elements which

will be creating a major impact on the small and medium scale enterprises. As it can be seen
that there are various issues which are faced by the enterprise in relation to leadership
management. Such issues will also be highlighted in the study in a detailed manner.
Research aim, objectives and questions
Research aim
To examine the factors which affect the leadership in relation to Small and Medium Scale
Enterprises
Research objectives
 To develop basic understanding about the factors linked with leadership with small and
Medium Scale Enterprises.
 To determine the issues faced by small and medium scale enterprise in terms of
leadership management
 To determine the relationship between leadership factors and the small and Medium
Scale Enterprises.
Research questions
 What is the basic understanding about the factors linked with leadership with small and
Medium Scale Enterprises?
 What are the issues faced by small and medium scale enterprise in terms of leadership
management?
 What is the relationship between leadership factors and the small and Medium Scale
Enterprises?
Research rationale
In relation to the present study, the main goal to conduct this research is to understand
about different types of elements which has the power to influence good leadership within
the small and medium enterprises. As the term leadership is considered as an essential
concept within an organisation because it helps in guiding and inspiring employees to work
in a right manner for achieving success and growth in the competitive market (Ma and
Jiang, 2018). The main idea of conducting this whole research is to determine the effect of
factor related to leadership on the small and medium enterprises in order to improve
overall performance of employees. Likewise, this particular research helps in fulfilling two

type of objectives that is personal and professional. In terms of personal objective, the
researcher will gain detailed knowledge and skill about different leadership styles and
different factor that affects it. Whereas, in terms of professional objective, the researcher
will get details regarding how to perform leadership role in future company and also helps
in conducting the research in future on the similar topic more appropriately.
Significance of the research
The following research topic is quite significant and important in gaining detailed
knowledge about the leadership factor in relation with the small and medium enterprises.
Leadership plays a very important role within an organisation because it helps in providing
direction to the employees towards achieving high success and profitability in the business
market (Zhou and Wu, 2018). It is important for the company to chose right person for giving
leadership responsibility within the organisation because they help in assisting employees with
any problem. This helps the researcher in getting all the relevant and detailed information about
the selected topic in a more reliable and effective manner. The researcher chooses different types
of research methodologies methods to conduct the present research in an efficient and smooth
manner. This knowledge and skill help in collecting data and information about the topic and
also helps in determining the strengths and weaknesses of the researcher for carrying out the
future research in an appropriate manner. In order to sustain in the highly competitive business
environment, it is important for the company to choose good leader that motivates and inspires
employees in the right direction. The following research also helps students in increasing their
knowledge about the concept of leadership within an organisation and its importance in the small
and medium enterprises. It also helps the researcher in conducting the research on the same topic
efficiently and effectively for getting more authentic and accurate information.
Research problem
The main problem identified in carrying out the present research is the challenges faced
by the company in the absence of leadership. Without leadership no employee can work in the
right and deliberate manner and this effects the overall performance and productivity of the
business. This also affects the performance of employees as they do not clearly understand their
role and responsibility in the right manner and this results in decreased profitability.

CHAPTER 2: LITERATURE REVIEW
What do you mean by elements of leaderships which affect the small and medium scale
enterprises?
As per the view of Nor-Aishah, Ahmad, and Thurasamy (2020) Leadership is the term of
motivation that allows to leaders to motivate the group of people for achieving the common goal
of the business. Leadership is an art to guide or influence the people for the effective working
that is the benefit for the business operation. it is a process that helps to motivate and guide the
followers and inspiring them for giving their best performance for the business's growth. A good
leadership handles the overall situation or activity of the group that helps in coordination and
communication. Leadership determines as the success or failure of the business because it is
responsible for manage the overall activity and operations. There are five essential elements of
Leadership such as communication, democracy, seeking out feedback, knowing ourself and
know about the team. In context to small and medium scale enterprises, the weak and insufficient
leadership skills are affecting the small and medium scale enterprises because there is no
communication and coordination in team members (Khan, and et.al., 2021). Small and medium
scale enterprises is affected by the poor skills of leadership which is the loss for the overall
business and its operations. SMEs needs to guide their team about overall crisis which helps to
develop their leadership skills. Leadership plays an important role in SMEs because it is help to
manage the overall process of team work. Elements of leadership affecting the small and
medium scale enterprise as maintain the leadership quality of the leader that helps to increase the
SMEs productivity and performance.
According to the point of view of Arici and Uysal (2022) leadership is defined as the
skills that manage and control the overall activity and process of the team. It is referring to the
skills of guidance, motivation, training, controlling, communicating the overall team
individually. These skills helps to leads the team members and motivates them to achieve the
goal together. A good leader is responsible for all the success and failure of the organisation
because they are handle the overall process of business. A leader is a person or individual that
are responsible for the manage the leadership quality within the business. There are some
elements of leadership that is helps to improving the business operation such as communication,
democracy, seeking the feedbacks, knowing ourself, and knowing others. In context to small and

medium enterprises, the weak leadership quality can cause of the failure of the business that
affecting the overall productivity and performance. Small and medium enterprise affecting by the
communication of people which is creating so many issues within the business. A poor and
inefficient leadership is the reason of the failure of the business and its operation (Patiar, and
Wang, 2020). it is hitting the small business and its areas directly, because a weak leadership is
not able to maintain the overall function of business which affecting the performance and
productivity. A lack of leadership skills is creating many challenges in the business which can be
caused by the gap of soft skills in the individuals.
In the opinion to Khuwaja and et.al (2020) leadership is the function which is own by the
leaders for motivating and managing the group or people for achieving the common goals of the
business. Elements of leadership helps to develop the communication, helps to collect the
information about others, knowing yourself, seeking the feedbacks, and democracy. Leadership
is the quality that is helps to guide, motivate, control, manage and trained the team members for
achieve the same gaols. It also helps the employees in working together and coordination of the
team members. it is the quality that mange the overall team and motivates them for effective
working. In relation to small and medium scale enterprises, leadership is developing the overall
team performance that is helps in effecting working but, a weak leadership management in the
business can affect the overall performance and growth of the business (Canterino, and et.al.,
2020). The small and medium scale enterprise has low and weak leaders which is affecting its
productivity and performance of the business. Small and medium enterprise can be affecting by
the low combination of team members because if there is no good leadership then there is no
motivation and better performance of team members. Small and medium scale enterprises is
important for the economy but mostly SMEs not perceive the leaderships quality within the
business which may affects the factors and function of the business.
Explain the issues faced by small and medium scale enterprise in terms of leadership
management?
In the opinion to Weiss (2021) there are many challenges that is faced by the small and
medium-sized business in the term of leadership. They faced that there is no effectiveness within
the business. Employees performance getting low due to poor leadership. They faced that
employee are not communicate with each other which is having an issue for the coordinate
working. They faced there is a lot of barriers within the business because employees are not able

to work with effectiveness. For a leader it is necessary to having the high-skilled for the good
leadership but in the term of SMEs they faced that there is inefficient and weak performance
because the leaders are not able to control and manage the group of people (Dawar, and Singh,
2022). small medium-sized business faced that leadership management is not possible due to
employees communication because employees are not able to communicate with each other that
is creating the impact on the coordinate working. Small and medium-sized business are affecting
by the poor and weak leadership skills that is reducing the performance of the business.
According to the view of Müller, Buliga, and Voigt (2021) there are many issues which is
faced by the small and medium-sized enterprises in the term of leadership management.
Leadership skills are required high skills to lead within the team. For a good leader, it is required
many skills such as communication skills, management skills, human resources skills, listening
skills, creativity, innovative and many more. In context to small and medium-sized business,
they facing issues in the term of leadership skills where they faced that there is no leadership
qualities in the manger who can manage the overall team and its operation. They faced that there
is no effective working of employees which reduce the productivity and profitability of the
business. They faced that leader has limited skills which impacting on the business performance
because employees are not coordinate with each other for achieving the common goal for the
business. They faced that there is low productivity and performance of the employees which
harm the business operation of the small and medium-sized business (Iglesias, and et.al., 2020).
they faced that there is no effective leader for decision making in the business which is creating
the issue in gaining the success in future.
As per the point of view of Trevino and Nelson (2021) there are some challenges and
issues that is faced by the small and medium-sized business. They faced that the team members
are not coordinating with each other why which it is reducing the business performance. There is
lack of effectiveness in the business which effects on the business operations. They faced those
employees are not listening to their leaders which is creating the barriers in the working. A small
or medium business can be run by the good leader but it is necessary to listen the leader but they
are facing issues in managing the employees. They faced that there is no communication
between leaders and team members which affects the performance and growth of the company.
They faced that employee are losing their motivation to work with effectiveness which is also
creating an issue for the business growth (Miles, and Morrison, 2020). they faced that there is no

productivity and profitability because of law performance of employees. These challenges make
the issue for the business which reduces overall growth and performance. It also reduces the
employee’s motivation why which there is no effective working in the business.
What is a link between leadership variables and small and medium-sized businesses?
According to the point of view of Qadir and Yeşiltaş (2020) the link between leadership
variables and small and medium-sized business referring to the function because leadership play
a vital role in the development of small and medium-sized business. Leadership variables is the
term that is referring to the three effective variables such as time, money and resources. These
variables manage the effective working. Variables of leadership determine as the function to
manage the overall time, cost, money and other resources that helps in effective and efficient
working of the organisation and the small and medium-sized business referring to the backbone
of the country because it is interlinked with society and economy. Small and medium-sized
business helps to increase the growth of the economy. The linked between variables of
leadership and SMEs is, leadership variables helps the SMEs in saving the time, money and
resources which is the big advantage for the small and medium-sized business (Xie, 2020).
Leadership variable helps the small and medium-sized business to consume their time and cost
and increase the profit for the business. Leadership play a important role in managing the overall
operation of the business. Small and medium-sized business's achievements can be achieved by
the good leader.
As per the view of Sawaean and Ali (2020) the link between leadership variables and
small and medium-sized business is defined as the term where the leadership variable provides
some essential variable to the SMEs to developing and manage the overall system. The
leadership variables help to manage and consume the time, resources and money that is
increasing the profitability and productivity of the business. Leadership variables is playing the
vital role because it helps the small and medium-sized business in development. With the help of
leadership variables SMEs increase their production by decreasing the waste cost because
leadership is also helps in decision making. A good leader of the business helps to consume the
time, money and resources and increasing the profit of the business (Dias, and et.al., 2022).
Small and medium-sized business take helps from the leaders for achieving the gaols for the
business. Reason behind the success of small and medium-sized business is an effective leader
that motivates and develop the group of people for achieving the goals for the business with

success. Small and medium-sized business goals can be achievable by the leadership variables.
The relation between leadership variables and small and medium-sized business playing a
important role because it is helpful for the SMEs. Leadership variables helps in effective
working and increase the performance and productivity of the business which is the advantages
for the SMEs.
In the opinion to Xuan, Thu, and Anh (2020) the link between the leadership and small
and medium-sized business is the function where the leadership helps the small business to
manage their overall production and productivity through the better and effective working.
Leadership is useful for the small and medium business because it is help to motivate the
employees within the business for achieving the goals with success. Leadership helps in
coordination which is the benefit for the small and medium-sized business in coordination of
employees. There are many links of leadership and small and medium-sized business which
creating the many advantages for the business. It is helps to increase the productivity and
performance of the business which improves the future growth of the business. The overall
productivity and process of business is handlde by the leaders where the the leadership quality
helps in decision making for the business (Fasth, and et.al., 2022). SMEs is effective if the
leadership variable are available in the business because it provides three essential variables such
as time, money and resources which is help in consume the overall time and cost of the business.
The variable's resources help to provide many terms such as finance, money, operations and
many more that is the benefit for the business. Leadership variables helps the SMEs to achieve
the gaols with success.

CHAPTER 3: RESEARCH METHODOLOGY
Research methodology can be defined as a process of gathering and analysing
information on the given research topic in an effective manner (Blaikie, 2018). Research
methodology is considered as an essential part of the complete research because it helps in
maintaining the reliability and credibility of the information that researcher collects about the
topic from authentic and correct sources.
Research philosophy
Research philosophy can be classified mainly in two types which are primarily known as
positivism and interpretivism. The researcher has selected interpretivism in the present carried on
research so that qualitative information about the topic can be gathered in a proper manner
(Tayebi Abolhasani, 2019). Interpretivism philosophy is selected because it helps in collecting
and analysing qualitative or subjective data in a more easy and effective manner. It is also helps
in providing different approaches for solving the problem in a more reliable manner and for
attaining the research aim and objectives.
Research approach
Research approach can be divided in two different types which are defined as deductive
and inductive. For carrying out the current investigation in an effective manner, inductive
approach is selected by the investigator (Camic, 2021). Inductive approach is selected by the
investigator because it helps in testing new theories and hypothesis so that authentic and correct
data in an efficient and scientific manner. In inductive approach the researcher gets enough time
to complete the research by overviewing the topic in detail so that authentic information can be
attained.
Research strategy
Research strategy can be classified into various types which are defined as survey, focus
group, systematic literature review, grounded theory, case study, experimental research and
many more (Silverman, ed., 2020). For conducting the research in a proper manner, the
researcher has selected systematic literature review. This strategy is selected because it helps in
gathering information from different authentic sites and results in attaining the set aim and
objectives effectively. Literature review also helps in gaining familiarity with the present
knowledge in the selected field as well as the limitations and boundaries of that particular field.
Research choice

Research choice is mainly categorised into two types which are defined as qualitative and
quantitative methods. In the current carried on investigation, the investigator has selected
qualitative research choice (Mukhalalati and Awaisu, 2019). Qualitative research choice method
is selected by the investigator because it helps in collecting quality and right data about the given
topic in an effective and efficient manner. It also helps in understanding the users, customers or
visitors in a proper manner and results in achieving the predetermined goals and objectives of the
business.
Data collection
There are mainly two forms for collecting data on the particular topic such as primary and
secondary methods. In conducting the present research in a more effective manner, the
researcher has selected secondary method for collecting data (Whitley and Massey, 2018).
Secondary data collection method is selected because it helps in gathering information about the
topic by different sources in an appropriate manner. Collecting secondary data on a particular
topic is much easier and faster than the primary data collection which results in saving the
overall time and effort of the researcher.
Data analysis
Data analysis can be categorised in different ways which are defined as frequency
distribution analysis, thematic analysis and many more. Thematic analysis is selected by the
investigator in carrying out the present investigation in an effective and efficient manner
(Ademolu, 2021). Thematic data analysis method is selected by the investigator because it helps
in determining the detailed analysis about the selected research topic in a proper manner. It is a
strategic method that helps in describing the data in a detailed way but it also includes
interpretation in the continuos processes of constructing themes and selecting codes.
Time horizon
Time horizon can be classified in two different ways such as cross-sectional and
longitudinal approaches (Witell, Holmlund and Gustafsson, 2020). For conducting the current
research in an efficient manner, the researcher has selected cross-sectional time horizon research
method. Cross-sectional research method helps the researcher in completing the research in a
timely manner and is also a cost-effective method. This method is comparatively less expensive
and time consuming than other different types of research methods because it helps in collecting
data in single time.

Sampling
Sampling can be divided mainly in two types which are primarily known as probability
and non-probability techniques (Lisboa, 2018). In carrying out the present investigation, the
investigator has selected non-probability sampling technique. Non-probability sampling
technique is selected by the investigator because it helps in selecting units from the large set of
population for gathering subjective data in a proper manner. It is not a defined as a complete
frame of survey but it is considered to be a easy, fast and expensive method of obtaining data on
the selected research tropic.

CHAPTER 4: DISSCUSSION
Theme 1: Elements of leaderships which affect the small and medium scale enterprises
It has been discussed from the above literature review that leadership plays a very
important role within an organisation because they help in motivating and inspiring employees to
work in an effective and efficient manner. Leadership can be defined as the ability of a person or
group of persons in order to guide and influence followers or other important members within an
organisation. An effective leader generally possess several different characteristics like
management skills and strong communication, self confidence, innovative and creative thinking,
ability to take risks and in dealing with the uncertain crisis in an appropriate manner. Leadership
is important for both small and large organisation because it helps in making a positive and
healthy working environment in order to keep workers satisfied. It is necessary for small and
medium organisation to choose right leaders within their business so that all employees can work
in a proper and systematic way (Fitriasari, 2020). There are several different types of leadership
elements that effects the performance and productivity of small and medium enterprises in a
positive manner. Communication, knowing employees nature and working, sending feedback,
building creativity, maintaining transparency and trust among employees are some of the
important elements that leader builds. Leaders are mainly responsible for developing and guiding
employees in an effective so that they perform their task in a more proper and effective manner
within an organisation. When a leader is communicating things properly to the employees they
tend to do less mistakes and this helps in improving their overall performance in performing the
given task by the manager. Good and effective leaders use transparency in their work which also
helps in gaining the trust of employees so that they can also work in a more efficient and
productive manner within the small business. Communication is the key to develop employees
and this helps in improving the coordination and cooperation among employees for conducting
work in a more systematic way. Small and medium enterprises needs to develop employees in
the right manner and to choose right leader that can help business organisation in achieving high
success and growth in the market. Leaders serves many skills such as motivation, training,
guidance and communicating employees so that they develop employees in a proper manner in
order to achieve the predetermined goals and objectives. It is important for small and medium
enterprises to focus on building quality working environment for employees so that high growth
and profitability can be attained. Leadership is the most effective management function that help

employees in engaging them within the activities of the business and in taking equal participation
in the process of decision making (Purwanto, 2020). Employees are considered as an important
element because they help in achieving the predefined goals and objectives of the business in the
highly competitive market. It is significant for small scale enterprises to adopt leader within their
organisation so that they manage functioning of the business operations and in dealing with the
employees in an effective manner.
Theme 2: Issues faced by small and medium scale enterprise in terms of leadership
management
It is discussed from the above literature review that there are several issues that the small
and medium enterprise face at the time of leadership management. Leadership play a prominent
role in engaging and retaining employees within the business organisation for long period of
time. It is important for the small and medium scale enterprises to hire a good and effective
leader which results in improving the overall performance of the business in the competitive
market. Environment of the workplace is very necessary for the business because that helps in
retaining employees in the company for more time period and also results in gaining high growth
and success. Providing inspiration to employees is a main issue that leader face at the time of
motivating and inspiring employees for providing quality work. Sharing the vision to employees
helps them in focusing on creating the value about their work so that they connect with the work
in a proper way (Akpan, Udoh and Adebisi, 2022). It is the responsibility of the leader to search
out the actual potential in their team members in order to encourage growth in the business
market. Listening to the team members is the core purpose of leader so that they address their
problem in an effective manner. Accepting change is the major issue that company face with the
changing market conditions so that employees deal with the uncertain situations in an effective
and efficient manner. Any change in the market condition directly impacts the performance and
productivity of the business in the competitive market. It is necessary to validate the feelings of
the team members in order to find their positive side and for making them comfortable within the
business. This helps in building positive and healthy working environment so that employees
work in a more effective and efficient manner. There are different perceptions and thoughts of
people on every particular thing and that is why it is important for leaders of the company to
understand the nature of employees. But understanding the thoughts and nature of every
employee is considered to be a major challenge for the company which creates problem among

leaders and employees working in a team. Conflict among the workplace can be extremely
challenging if not handled with care than it will result in increasing work problems among the
members of the team (Giunipero, Denslow and Rynarzewska, 2022). If one of the employee
disagrees with another employee than it is the responsibility of an employee make sure that they
need to build better coordination in their work. Employing employees from different diverse
areas is the challenge that business face as they need to deal with every nature employee in an
effective manner. The main purpose of leadership management is an effective management
function in an organisation so that high growth and success can be attained within the business in
the long run.
Theme 3: Link between leadership variables and small and medium-sized businesses
It has been discussed from the above literature review that leadership variables and small
and medium sized businesses are linked with each other. Leadership plays an important role in
developing small and medium sized organisation so that they deal with the business activities in
a productive manner. There are mainly three different types of leadership variables that help in
dealing with the uncertain situation in a proper manner such as time, resources and money. To
gain competitive advantage within an organisation, it is important for the business leaders to
utilise time, resources and money in a efficient manner for increased growth in the market. Time
and money are the most useful elements within the small and medium enterprises because this
helps in dealing with the practices related to leadership in an effective manner. It is important for
the leader of the business to develop and treat their employees in a proper manner so that they
achieve the predetermined goals and objectives of the business (Villaluz and Hechanova, 2018).
Optimum utilisation of all the resources is necessary for leaders so that they save their extra
money on wasteful resources within the business organisation. It is the leaders of the company
that guide and assist employees within the business to work in an effective and efficient manner
so that they improve the working efficient and capability of employees. Leaders play a important
role in providing training to employees in order to increase their overall skills and knowledge
within an organisation. Training is the most important method of dealing with the employees role
and responsibilities in a more proper manner. An effective and productive leader tends to
improve the culture of the organisation in order to improve the working structure of the business
so that they work with high accuracy. It is the leader that help business organisation in gaining
success and high profitability within the business research so that high variability and reliability

an be gained within the business. Employees are the most productive element of the business and
they needs proper care and attention of leaders so that they can work in an effective and efficient
manner for increased growth in the market. Valuable resources are productive within the
business and for attaining high productivity and performance in the competitive business market.
Giving proper training to employees help in making employees understand about their role and
responsibilities that they need to perform at the time of working. In order to gain competitive
advantage within the business market, it is important for the business organisation to develop and
integrate employees with best rewards so that they feel important and valued within the small
and medium organisation (Susanty, Budiharjo and Winarto, 2022). This helps in utilising the
resources of the business in an effective manner because they do not need to recruit and select
employees on a regular basis and this results in saving their precious time and money in a
productive manner. It is necessary to hire productive leaders within the business so that all
employees work with coordination and cooperation for working together as a team and with high
proficiency.

CHAPTER 5: CONCLUSION AND RECOMMENDATION
Conclusion
It is concluded from the above gathered information that leadership plays a very
important role within the business and this helps in building high growth and productivity within
the business organisation. Leadership is regarded as an effective action of leading employees of
the company in directing towards achieving goals and objectives in the market. A leader
generally sets a clear and static vision for the company, motivates and inspires employees, assists
employees through the process of work and builds morale. Without leadership small and medium
enterprises face several issues which generally results in declining the overall productivity and
profitability in the market. Main responsibility of a leader within the company is to motivate
employees to work in a more effective and efficient way so that high growth and success can be
attained within the business market. Leaders guide and assist employees in the company so that
they understand their roles and responsibilities in an appropriate manner for increased
profitability in the business market. It is the employees who are responsible for attaining the
predetermined goals and objectives of the business in a proper manner for gaining more
profitability and productivity in the competitive market. It is important for the business
organisation to develop and build employee so that they work in a more efficient manner so that
they achieve all the predefined goals and objectives of the business in a proper manner. Without
leadership in an organisation leads to reduced growth and productivity within an organisation
and this results in decreasing the working efficient of employees. Leadership is an effective
management function that helps the company in improving the functioning of the business
operations within the business so that better growth can be attained. This helps in dealing with
the business practices and in building coordination among different departments so that they
work in a better and effective manner in achieving the set goals. It is the responsibility of the
leader to develop high variability among workers so that they work in a creative manner in
attracting more number of customers and in building workers morale. Leadership helps in
determining the success and failure of the business organisation because they help in managing
the overall business activity and operations in the market. In the absence of leadership in the
small and medium enterprises, they tend to achieve the success within the business organisation
so that high success and profitability can be acquired. It is important for the leaders to develop
employees in a proper manner so that they gain more share in the market and in gaining ore

customers in retaining them for more period of time. Leadership is the ability to deal with the
uncertain situations in an effective way so that the serve better practices within the business
organisation for more period of time. Leaders play a very important role in the business because
they help in guiding employees and making them understand about their job role so that they
work in a productive manner.
Recommendation
It is recommended to the small and medium scale enterprises to make use of leadership in
an effective way so that they develop employees so that they work in a more productive manner.
Some important recommendations are defined as under:
Investing time in coaching and developing employees – It is recommended that leader of the
business must invest their time in developing and coaching employees so that they achieve high
profitability and productivity within the business organisation. This helps in dealing with the
business organisation in retaining them employees for long period of time so that they achieve
their predefined goals and objectives. It is the leaders of the business that helps in dealing with
the uncertain situations in a proper manner.
Understanding the need of employees – It is important for the leader to understand the needs of
employees so that they solve each and every problem within their business for better growth and
success in the market. Employees are considered as the key factor that helps in achieving the
predetermined goals and objectives of the business in an effective and efficient manner in the
competitive market.
Providing training to employees – Providing training to employees is the most important
recommendation that leaders of every size organisation must consider because this helps in
improving their overall skills and knowledge within the business. It is the responsibility of
employees to build and develop employees in such a manner that they focus on achieving the
predefined goals and objectives of the business in an effective manner. Training help in
developing employees in a productive manner so that they develop sustainability within their
organisation for increased profitability and productivity.
Engaging and retaining employees – It is important for the leaders to retain and engage
employees within the business for more time period so that they involve in all the business
activities in an effective manner. Highly engaged employees tends to be more productive and
efficient which helps in gaining high success and growth in the competitive market. It is

necessary for the business organisation to choose the right leader that help in guiding and
retaining employees in a proper manner.
Connecting with the team members – Building effective connection with the team members is
the most effective approach for leaders and this helps in building high cooperation and
coordination among them. It is important for the business organisation to know the working
operations in a more effective manner so that they develop high growth and success in the
market. When team members work as a team they tend to work in a more productive and
efficient manner for high success and growth in the market within the business market.
It is important for all the business companies to hire effective leaders so that they develop
employees in the right manner and this helps in gaining high profitability within the business
market. Right leaders are more productive and beneficial for employees so that they achieve
predetermined objectives and goals of the business in an effective manner within the competitive
market.

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