Leadership styles and business sustainability of small and medium-sized enterprises in Arua city, Uganda
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Date
2025-11-13
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Publisher
Muni University
Abstract
This study examined the relationship between leadership styles and business sustainability among Small and Medium Enterprises (SMEs) in Arua City, Uganda. Specifically, it investigated the relationship between transformational, transactional, laissez-faire, and democratic leadership styles on the sustainability of SMEs. The researcher employed a sequential explanatory design, adopting both quantitative and qualitative approaches to ensure methodological triangulation. Data were collected from a sample of 365 respondents, using an explanatory sequential approach whereby the quantitative results were collected and analyzed first, then augmented by qualitative data. The study adopted simple random sampling techniques for managers, supervisors, and lower level employees, while purposive sampling targeted managing directors. Questionnaires and Interviews were used. Quantitative data analysis employed descriptive statistics involving frequencies, Standard Deviation and percentages and inferential statistics using Spearman correlation, while qualitative data were grouped into themes. Findings revealed a weak positive correlation (r = 0.254) between transformational leadership and business sustainability, a moderate positive correlation (r = 0.332) with transactional leadership, a weak positive correlation (r = 0.138) with laissez-faire leadership, and a weak positive correlation (r = 0.175) with democratic leadership. The results showed that transactional leadership had the strongest influence on business sustainability. It was concluded that leadership styles significantly explained business sustainability among SMEs in Arua City, Uganda. The study recommends that SMEs should prioritize transactional leadership practices in order to strengthen strategic decision-making, improve operational efficiency, and foster long-term sustainability.
Description
A dissertation submitted to the faculty of management science in partial fulfillment of the requirements for the award of master of business administration of Muni University
Keywords
Leadership styles, Business sustainability, Small and medium-sized enterprises, Arua city, Uganda
Citation
Obol, E. (2025). Leadership styles and business sustainability of small and medium-sized enterprises in Arua city, Uganda (Unpublished graduate dissertation). Muni university, Arua, Uganda