Abstract
Small Medium Enterprises (SMEs) have been identified as productive drivers of inclusive economic growth and development in South Africa and around the world. It is estimated that SMEs in South Africa make up 91% of formal businesses, employ 60% of the labour force and contribute 34% of the Gross Domestic Product. This is important considering the recent setback caused by the July 2021 violence that claimed 309,000 job losses.
Realising the importance of SMEs’ role in achieving economic growth and eradicating poverty and that SMEs will not exist without entrepreneurs and entrepreneurship is crucial. Therefore, leaders who possess Entrepreneurial Leadership attributes are needed.
A quantitative, cross-sectional, ex post facto, survey study, was conducted. A sample size of N=130 respondents was obtained. Statistical Analysis was conducted using, descriptive statistics for the different constructs. Exploratory Factor Analysis, Kolmogorov-Smirnov test for normality, Pearson's Product-Moment Coefficients were used to test the inter-correlation between constructs.
The outcome supported the following: there is a strong positive relationship between Entrepreneurial Leadership and SMEs’ Business Performance, a relationship between Entrepreneurial Leadership and Entrepreneurial Experience; and a significant relationship between Entrepreneurial Experience and SMEs’ Business Performance; and Entrepreneurial Experience. This moderates the relationship between Entrepreneurial Leadership and SME’s Business Performance. The moderating effect of Entrepreneurial Experience could not be validated through hypothesis testing.
Future research could consider other moderator variables that could have the potential to moderate the relationship between Entrepreneurial Leadership and SMEs’ Business Performance.