The Perceived Impact of Management Styles on the Profitability of Small and Medium-Scale Enterprises in Enugu State

Abstract

The activities of Small and Medium-Scale Enterprises (SMEs) have been a subject of continual interest to researchers as they are major contributors to the growth and development of every country. Thus, this study examined the perceived impact of management styles on the profitability of small and medium-scale enterprises in Enugu State. Management is a key factor for improving the performance, productivity and profitability of any organisation. The objectives of this study are to: examined the perceived impact of transactional management style, assess the perceived impact of transformational management style and ascertain the perceived impact of laissez-faire management style on profitability of SMEs in Enugu State. A survey research was adopted for the study and questionnaire was the major instrument of data collection. Data analysis was done using mean and standard deviation. The study found that transactional management especially rewards have positive impact on the profitability of SMEs in Enugu State. The study also found that transformational management style has positive impact on profitability of SMEs in Enugu State. The study further found that laissez-faire management style does not have impact of SMEs profitability in Enugu State. Based on the findings of the study, it was recommended amongst others that in order to stay in the competitive business environment, right managers with high capability, creativity and idea be identified at all levels of SMEs in Enugu State.