THE EFFECT OF LEADERSHIP QUALITIES ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES

Purpose: This study aims to investigate the effect of leadership qualities on the performance of Small and Medium Enterprises (SMEs), and to examine the impact leadership qualities have on SMEs' performance.   Theoretical and Framework: Leadership qualities play a role in enhancing employee job satisfaction and organizational performance.  Trait theory believes that leaders are either born or made with some qualities that will make them excel in leadership roles.  Leaders’ emotional intelligence, integrity, honesty, creativity, and innovation are vital for Small and Medium Enterprises' sustainability.   Design/Methodology/Approach: Descriptive design was adopted, using cross-sectional approach. Purposive sampling was used with a sample size of 400 employees of SMEs in the Accra Metropolitan Area. Usable questionnaires of 344 were analysed using IBM SPSS for the descriptive statistics with structural equation model (SEM) AMOS to investigate the extent of the relationship.   Findings: The study discovered that each of the three leadership attributes has a strong statistically significant positive link with the success of SMEs. Emotional intelligence, integrity and honesty, and creativity and invention are factors that influence SMEs' performance.   Originality/Value: This work is unique because it adds to the literature on the impact of leadership traits on SME performance, which has not been thoroughly explored in a developing nation like Ghana. The study also illustrated how to utilize a structural equation model to examine the relationship between leadership and the performance of small businesses. Furthermore, by selecting samples from various SME sectors, the study enhanced the understanding of leadership attributes.