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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

A Linkage between Entrepreneurial Leadership and SMEs Performance: An Integrated Review

Fakhrul Anwar Zainol, Wan Norhayate Wan Daud, Lawan Shamsu Abubakar, Hasnizam Shaari, Hazianti Abd Halim

http://dx.doi.org/10.6007/IJARBSS/v8-i4/4000

Open access

Previous researches have shown that characteristics of entrepreneurial leadership have influence organisational performance regardless of the organisational size. This paper was set to review the relationship of vision, innovation, proactiveness and risk-taking on Small Medium Enterprises (SMEs) performance. This resulted to the question that does entrepreneurial leadership (i.e vision, innovation, proactiveness and risk-taking) significantly relate to performance of SMEs? From the review of related literatures, the characteristics of entrepreneurial leadership which comprises of vision, innovation, proactiveness and risk-taking are the features that can be found in both leadership and entrepreneurship, their present in organisation setting may positively impact on organisational success, the SMEs. Thus, SMEs operators that are more exposed to setting a clear goal and have clear set of activities would performed credible well interm of increase in sales, customer patronage and many other constructs that are related to the performance. In the same vein innovative SMEs tend to also performed well because of their ability in launching of a new product or advancing the existing one as well as studying of the market environment. On a general note out of four characterstics of entrepreneurial leadership, vision and innovation are the most significant toward the good performance of SMEs organisation.