Leadership Styles, Financial Competency and Survival of Micro, Small and Medium Scale Enterprises in Lagos State, Nigeria

Abstract

Micro Small and Medium Scale Enterprises generally play vital roles in economic growth and development nationwide. In Nigeria, it has not been contributing as expected to Nigerian Gross Domestic Products, despite it has absorbed the largest labour force. This study investigates the influence of leadership styles and financial competency on the survival of Micro Small and Medium Scale Enterprises. The design of the study was descriptive survey research. Eight hundred and thirteen MSMEs staff were randomly sampled from two hundred and seventy-one MSMEs in the three Local Government Area in Lagos State. The results show that transformational and charismatic leadership styles excerpt positive influence while financial knowledge exerts significant negative influence on the survival of Micro Small and Medium Scale Enterprises in Lagos State. It was recommended that Training and retraining is also required in the area of financial literacy for manager/owner to be financially competent.