The Role of Leadership Styles on of Sales Turnover: a Case of Small Scale Businesses in Mukono District

Abstract

This study was about the Role of Leadership Styles on Sales turnover of Small Scale Enterprises: A case of small businesses sampled from Mukono District. The objectives were to establish the relationship between leadership styles and sales turnover, employee commitment and retention in small scale business enterprises. The research design adopted was a case study design. The study however included a total of 20 small scale enterprises in the district and purposive and simple random sample techniques were used. The research instruments that were used during the process of data collection included questionnaires, interview guides and at times observation sessions.

During the study, the researcher examined the relationship between leadership styles and sales turnover, leadership and employee commitment and retention at work. Many studies on the effect of leadership styles in the performances of large industries, institutions, and manufacturing plants have been established, but studies on leadership styles and performances in the small scale enterprise sector had so far not been considered. This formed the base of this study.

Secondly, the omission of “leadership” whenever evaluating the performances of small scale enterprises was also identified to be leading to biased results. Data analysis was done both quantitatively and qualitatively using the percentage and chi-square tables with the help of SPSS Computer Programme, to establish the relationship between leadership styles and sales turnover of small scale enterprises. The overall findings showed that leadership has an effect on the sales turnover of small scale enterprises. The researcher recommended that there is a need for the leaders of small enterprises to have a clear vision, to educate and influence employees so as to perform well, Trustworthiness and motivational behavior, as the key components to employee satisfaction. Lastly “leadership” should be a major component to be evaluated among others, whenever evaluating the performances of small scale enterprises so as to get balanced results.

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