Towards theorising an effective leadership model for Small and Medium Enterprises (SMEs) in Zimbabwe

Abstract

While there is consensus that Small and Medium Enterprises (SMEs) are important to all countries especially developing economies like Zimbabwe, only 15% are expected to survive beyond three years. Scholars have attributed these high failure rates to managerial deficiencies and lack of an appropriate leadership model. As such, the study sought to propose an Afrocentric Effective Leadership (AEL) model for Zimbabwean SMEs. The study was guided by the positivism philosophy and the deductive approach. It adopted a quantitative research design where a survey was conducted using a questionnaire developed by the researcher. Primary data was collected from 241 participants from Bulawayo’s Central Business Area (CBA) who were chosen using the proportional stratified sampling technique. The study developed and validated an AEL model and an AEL instrument for Zimbabwean SMEs. It was concluded that effective leadership in Zimbabwean SMEs depends on ubuntu, culture, history of the country and stage of economic development of the country, intermediated by leader characteristics. It was recommended that leaders should lead in line with the philosophy of ubuntu. They should value group solidarity, good social and personal relations and believe in consensus and compromise. Employees should gain the courage to challenge their leaders, demanding accountability and transparency from them. The AEL instrument may be used to measure perceptions of effective leadership in Zimbabwean SMEs. The AEL model may be used to structure leadership such that SMEs in Zimbabwe and beyond are led in an effective way. It may also be used to educate students, budding and seasoned entrepreneurs on how SMEs should be effectively led in order to achieve sustainable success.