Impact of Entrepreneurial Skills on Business Growth, Considering the Mediating Role of Leadership Styles

Abstract

The present study investigates the relationship between entrepreneurial growth, leadership styles, and business growth. The study considers three factors, which relate to the Leadership styles (a mediating variable): Transformational Leadership (TL), Transactional Leadership (TS),and Laissez-Faire Leadership (LF). The independent variable on the other hand, Entrepreneurial Skills (ES) included factors of Strategic Competence, and Ethical Competence. At the end, the dependent variable Business Growth was measured through factors including firm growth, market share, vice versa. For the purpose of the research total two hundred responses were collected. The type of data used in the research is primary data. The results are revealed by using three different tests including the descriptive analysis, correlation analysis and linear regression method. The IBM SPSS software is used to conduct the results. Some authors suggest that entrepreneurial skills along with some leadership styles have positive impact on growth of new businesses, while some authors suggests that some of leadership styles has negative impact on the growth of businesses. This study findings suggest that Entrepreneurial Skills along with the three leadership styles has significant positive relationship with Business Growth. Finally on the basis of results conducted we are saying that the entrepreneurial skills along with the mediation of the leadership styles has its significant positive relationship with the growth of businesses in Pakistan. The study is equally beneficial and useful for the future researchers and for the entrepreneurs of Pakistan to improve their profitability by focusing more on the type of leadership that aids in the growth of new businesses.