Impact of Transformational Leadership Style on Business Performance of Small and Medium Enterprises in Tanzania

Abstract

This study attempts to determine the relationship between transformational leadership style and business performance of small and Medium Enterprises (SMEs) in Tanzania. This study used field data collected by 60 out of 100 mailed questionnaires sent to CEOs of SMEs in various regions of Tanzania. Data was analyzed quantitatively using Pearson product moment correlation and simple regression by SPSS. This study found strong positive correlation between transformational leadership style and business performance of SMEs in Tanzania. Transformation leadership was found to be a strong predictor of business performance of SMEs in Tanzania.