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The Role of Entrepreneurial Leadership on MSMEs Effectiveness: A Systematic Literature Review

Journal of Entrepreneurship & Management

Volume 11 Issue 1 & 2

Published: 2022
Author(s) Name: Mesfin Gezahegn, Kassa Woldesenbet, Konjit Hailu | Author(s) Affiliation: Addis Ababa University, Addis Ababa, Ethiopia.
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Abstract

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This paper presents a systematic literature review on the influence of entrepreneurial leadership (EL) on micro, small, and medium enterprises’ (MSMEs’) effectiveness. Entrepreneurial leadership is a rapidly evolving field of research that connects the field of entrepreneurship and leadership. Despite its significance for the MSMEs, our knowledge about the various EL attributes and their impacts on the effectiveness of enterprises is underdeveloped. To address this gap, we conducted a systematic literature review (SLR) of 60 papers published between 2000-2019 on the relationship between EL and the effectiveness of the MSMEs. The findings from the SLR showed the vital importance of entrepreneurial leadership to the MSMEs’ performance in turbulent and competitive environments. In addition, the review found that a large number of MSMEs fail in their first few years in business operation, and that the lack of entrepreneurial leadership and resources, such as management skills, competences, and financial resources, account for such a failure. The review found that the link between entrepreneurial leadership and MSMEs needs clear operationalisation to develop cumulative knowledge on this area. The review concludes with suggestions for further research.

Keywords: Entrepreneurial Leadership, MSMEs, Entrepreneurship

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