Full Project – The impact of leadership skills on the growth of small scale business organizations

Full Project – The impact of leadership skills on the growth of small scale business organizations

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From time immemorial, mankind has been confronted with the problem of how to effectively, make good use of the potentials of nature in association with other human beings. The desire to solve the above stated problem led to the emergence of the concept of leadership. The concept of leadership simply means that there must be someone in charge of a particular activity or activities designed to achieve a stated or certain objectives.


The importance of leadership is follower ship. It is the willingness of the followers to follow a person that makes him/her a leader to influence his subordinates, so that they strive willingly towards the attainment of the organization goals. These can be done through the use of effective communication process towards the achievement of group objectives. Leadership has been subjected to a variety of definitions. The behavioral science. It is a process for the attainment of goals, which is an exercise of influence by one person over another in achieving goals.


Nwachukwu (1999) opined that without leadership organization would constitute an uncoordinated group of people lacking directions. A leader is the most influential person in a organization who provides directions, guide group activists and ensures that group of objectives are attained. The terms influences include power, personal and positional attributed of a given leader. The function of leadership pervades all sections/departments of any organization.


The accuracy binds clarity of communication, affects the behavior and performance of the subordinates therefore, an effective leader must be able to communicate to enhance progress in the organization.


According to Nwachukwu (1999), organization is a combination of people or individuals effort working together in pursuit of certain common purpose called organizational goal. It is any group of two or more people working together to achieved goals or objectives.


Organization helps to provide goods and services in our society which help in the improvement of standard of loving of the people. The goal may be such a thing as profit for business organization, spreading of knowledge (university), natural defence (army), social satisfaction (social club).


The process of achieving organizational goals is thorough the coordinated performance of five specific functions of a leader which include planning, organizing, staffing, controlling and directing, Leadership involves getting things done through people by means of organizing them into a work team and assigning functions to them and ensuing true coordination, control and goals are achieved to conduct a stated goals or objectives.


Leadership effectiveness, therefore determines the success and failure of an organization in relation to some set objectives. Organization is a social and economic entity in which different individuals perform a variety of functions in order to achieve common goals.


For an organization to function properly that is to produce needed goals and services for its customers, the worker must behave in a way specified by the management of fulfill its aims objectives.


Leadership is a way of focusing and motivating a group to enable them to achieve their aim. It also involves being accountable and responsible for the group a whole. A leader should provide continuity and momentum and be flexible in allowing changes of directions.



In recognition of the fact that leadership skills and styles are high priority to the survival of any business or goals are the ends towards which activity is aimed. These represent towards which organizing, staffing, directing and leading and controlling are aimed. The rampant closing –up of both small and large business organizations in the recent time have stemmed from mis-management by leaders due to inefficiency and lack of focus. It is therefore essential that leaders in business organization are properly trained and educated in order to perform efficiency and effectively for the growth and profitability of the organization.



The major purpose of this study is to ascertain the impact of leadership skill on the growth of small scale business specifically the study aims at:


  1. To find out how lack of good leaderships can affect the growth and profit making of any small scale business organization.
  2. To find out how leadership skills and competence can enhance the growth of small scale business.
  3. Identifying some problems affecting effective and efficient leadership in business organization.
  4. To find out the leadership skills that can sustain the growth small scale business.
  5. To find out if leadership provides direction and focus for the term being led.


  1. To what extent does lack of god leadership affect the growth and profit of smaller scale business in Isiala Ngwa L.G.A.?
  2. What problems militate against the effectiveness and efficiency of leadership skill in business?
  • What type of leadership skill has the potential of sustaining the growth of small scale business?
  1. Can leadership provide directive and focus for the subordinates?



A successful completion of this work would enable the researcher and the business world to know the impact of leadership skills in business organization. It would enable business men, firms, charitable organizations, churches and profit making organizations companied and individuals to appreciate the importance of gaining priority education and training of managers or leaders for effective utilization of their skills and knowledge.


Furthermore, it would enable business organization (profit and nonprofit-making) to appreciate the significance and impact of leadership skills in terms of inducing compliance, focus of group process and achievement it will also provide useful information to the chambers of commerce,  firms, students and various organizations about the impact of leadership skill son business.


Finally, it will constitute a useful reference material for the library.



The study covers leadership skills and proficiency of leaders in small scale business in Isiala Ngwa L.G.A of Abia State. It also x-rays what leading entails which includes forward, inward and out wards of the entire business organization. It also touches on the different between leadership and management as well as leadership styles.



During the course of this research, I encountered several problems which include:

  1. FINANCE: There was in sufficient fund for my transportation to Abia State to source for reliable information.
  2. POOR INFORMATION: There was no adequate information to carry out my research work.
  3. TIME CONSTRAINT: I was given limited time to conduct those research work.



Terms and definitions which are defined briefly:

  • SMALL BUSINESS: According to Agu C.N. small scale business is a business that is owned by one or few persons with direct owners influence is decision making and having small share of the market with relatively low capital requirement.
  • BUSINESS: It is the sum total of those activities aimed at creation, maintenance and extension of a concern because it earn profit or other forms of benefits (Agu C.N.) 2003 management on introduction test.
  • EFFECTIVE LEADERSHIP: According to Oxford Advance Dictionary it is defined as the ability of an individual (leader) to achieve the interned objectives or result.
  • LEADERSHIP SKILL: According to Oxford Advance Dictionary learners it is the ability of an individual (Leader) to do something expertly and well.



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Full Project – The impact of leadership skills on the growth of small scale business organizations