Transformational Leadership and Its Impact on the Business Performance of Micro and Small Enterprises in Guadalajara de Buga, Colombia
Abstract
Currently, micro and small enterprises (MSEs) are of great interest to researchers due to their importance in the economic and social development of countries, especially in Latin America. With the onset of the health emergency
caused by the SARS-CoV2 virus (COVID-19), the competitiveness of these enterprises has been significantly affected. This has led executives to discover, develop, and strengthen internal skills, such as leadership, to enhance their performance and stand out in the new normal. The purpose of this article is to examine the relationship between transformational leadership and business performance in Colombian MSEs. This empirical study, employing a quantitative approach and a cross sectional design, was conducted with a sample of 210 micro and small business owners in the city of Guadalajara de Buga, Colombia. A survey questionnaire was administered through personal interviews with the managers or owners of such businesses during February and March 2023. The results indicate that transformational leadership significantly influences the business performance of MSEs in the region. The findings have important implications for decision makers in these enterprises, who should prioritize the implementation of strategies that strengthen their business management to promote the growth and development of their companies.
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