The role of leadership in sustainability of small scale enterprises: a case of small scale businesses in Mukono District (2005-2010).
Lumala, K. Peter
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This study was about the role of leadership in sustainability of small scale enterprises with reference to small businesses in Mukono District. The objectives of this study were, to establish the relationship between leadership and sales turnover, employee commitment and retention in small scale enterprises and find out whether leadership affects the sustainability of enterprises. The researcher justifies this study that, it will help the leaders and management of enterprises to come up with appropriate ways of increasing their sales turnover, employee commitment and retention, to achieve sustainability. The study intends to fill the indentified gap of omitting leadership as an independent variable whenever evaluating enterprises and will act as a stepping stone for further research. Studies on leadership and performances in large industries, institutions and manufacturing plants have been established, but studies on leadership and performances in relation to small scale enterprises sector had so far not been considered. The research design adopted was a case study design. The sample frame covered 20 enterprises from which a sample of 10 enterprises was selected using purposive and simple random sampling techniques. The study area was Mukono Town and Ggoma sub-county of Mukono District. The research instruments used included questionnaires, interview guides and observation sessions. Data analysis was done both quantitatively and qualitatively, using the percentage and chi-square statistic tables, through SPSS computer program to establish the relationship between variables. The findings revealed that leadership has an effect on the sustainability of small scale enterprises with 71% responses verse 20%. The findings on leadership and sales turnover revealed high positive correlation values of 0.988, 0.911, 0.454, indicating that leadership greatly determines sales turnover, similarly when leadership was related to employee commitment and retention, the results depicted significant positive Pearson correlation values of 0.937, 0.667, 0.991 an indication that leadership is positively dominant on the sustainability of enterprises. The study concludes that leadership has a major role to play in the sustainability of small scale enterprises, such that given the good leadership is equivalent to attracting the sustainability of an enterprise whereas bad leadership yields downside results. The researcher therefore recommended that; visionary leadership, morals/ethics, compassionate leadership, action planning, human resource management leadership, effective communication/motivation, structural leadership approach, separating leadership roles from managerial roles, Training of leaders, participatory leadership approaches, Priority setting, consideration of leadership in evaluating enterprises, and finally formulation of a national policy on leadership in organizations attract sustainability.