Factors affecting effective Leadership in Small and Medium Scale Enterprises

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