AN EXAMINATION ON THE EFFECT OF VISIONARY LEADERSHIP ON START-UP SUCCESS AMONG SMES IN MAIDUGURI METROPOLIS.

ABSTRACT

This study investigated the impact of visionary leadership on the success of start-up among SMEs in Maiduguri Metropolis. The study adopted the descriptive survey research design. The study population comprised start-up SMEs operating in Maiduguri Metropolis, while a total of 461 respondents were selected as the sample size using the Godden (2004) formula for infinite population. Out of the 461 questionnaires distributed, 428 were returned, and 399 were validated for analysis. A structured questionnaire was used for data collection, while the data collected were analyzed using frequency tables, mean scores, Pearson correlation, and simple linear regression analysis with the aid of SPSS version 25. From the responses obtained and analyzed, the findings from the correlation analysis revealed that visionary leadership has a strong positive and significant relationship with start-up success among SMEs at r = 0.57**, P = .000. This was further confirmed by the regression result which showed that there is a significant relationship between visionary leadership and the success of start-ups (R = 0.627, R2 = 0.393, F = 175.694, v = 0.627, t = 13.25, p < 0.001), which means that 39.3% of the variation in start-up success is accounted for by visionary leadership. The study concluded that visionary leadership has a significant impact on the performance of SME. It was recommended that SME owners should develop good visionary capabilities and align business strategies with long-term goals.

Keywords: Visionary Leadership, Start-up Success, SMEs, Entrepreneurial Leadership

1.0 INTRODUCTION

Entrepreneurial activity is a key force in the dynamism and innovation of economies, as well as in the generation of jobs, in both developed and emerging economies. The modern development models focus on how small and medium-sized enterprises (SMEs) contribute to inclusive growth and resilience in the local markets (Nguyen et al., 2021). Leadership as a social and organizational phenomenon has been broadly recognized as an essential factor in determining the performance of an enterprise, which is responsible for setting the strategic direction and influencing the mobilization of resources (Mamun et al., 2021). In this regard, changing views on leadership emphasize the growing importance of the forward-looking and adaptive approaches that reconcile organizational vision with environmental opportunities (Samuel & Samuel, 2022). Such views emphasize the need for studying leadership paradigms in a particular socio-economic context to get a better understanding of the outcomes of the enterprise.

Leadership within SMEs is often the expression of the personal orientation and cognitive frameworks of founders or managers and consequently plays a significant role in determining the course of the organization. Visionary leadership, which is defined as the capacity to envision a compelling future state and inspire collective commitment to its achievement, has become prominent in the modern management literature (Dhanasri & Narmadha, 2025). This type of leadership focuses on vision, creativity, and strategic orientation, which allows businesses to predict the market trends and respond proactively (Radav et al., 2023). Empirical research indicates that visionary leaders build a culture of creativity and purpose, which may increase organizational cohesion and sustainability (Hensellek et al., 2023). Visionary leadership conceptualization can therefore be used as a critical perspective in the study of leadership effectiveness in an entrepreneurial context.

The achievement of quantifiable growth, operational stability and competitiveness in the market in the initial years of business development is widely understood as the start-up success in SMEs. This success is affected by a combination of internal capabilities and external environmental conditions (Onesi-Ozigagun et al., 2024). The leadership orientation is central to the development of these results through the directing of the decision making process, allocation of resources, and innovation strategies (Dickson and Isaiah, 2023). Visionary leadership, in particular, is a contributing factor to start-up success because it sets clear strategic goals and promotes resilience in dynamic business environments (Alobeidli et al., 2024). The interaction between leadership vision and entrepreneurial performance reveals the need to investigate the attributes of leadership as integral elements of SME growth dynamics.

However, SMEs in Maiduguri Metropolis is a unique environment of changing economic activities and entrepreneurial initiatives. Within such an environment, approaches to leadership play an important role in determining how enterprises move through opportunities and maintain competitive advantage. When visionary leadership is put into context in the local socio-economic realities, it offers a framework of matching organizational aspirations with the needs of the community and market demands (Dhanasri and Narmadha, 2025). Furthermore, the combination of innovative thinking and strategic foresight in the operations of SMEs increases adaptability and long-term viability (Radav et al., 2023). Understanding the operation of visionary leadership in this local context provides useful insights into the mechanisms by which SMEs achieve start-up success and contribute to wider economic development.

Despite the recent recognition of leadership as a key factor in determining the success of an entrepreneur, there are still significant gaps in the understanding of the role of leadership styles in the success of start-ups among SMEs in developing countries like Maiduguri Metropolis. Existing literature suggests that while many SME owners display leadership tendencies, the clarity, consistency and future-oriented nature of such leadership varies significantly across enterprises (Kountur et al., 2020). In particular, the use of visionary leadership, which focuses on strategic foresight and inspiration, is not equally present among the start-up founders, thus raising questions about how much it contributes to business success. Furthermore, Familoni and Babatunde (2024) note that the empirical evidence of the link between visionary leadership practices and measurable indicators of start-up success, such as growth and sustainability, is limited and context-specific. Waziri (2022) also states that many studies tend to generalize the effects of leadership and do not isolate the unique contributions of visionary attributes in the SME environment. In addition, differences in entrepreneurial contexts, such as socio-economic and cultural dynamics, may affect the way in which leadership is exercised and outcomes are achieved (Oracha et al., 2021). Consequently, there is a lack of empirical clarity on the extent to which visionary leadership influences the success of start-ups among SMEs in Maiduguri Metropolis. This study, therefore, aims to critically examine the effect of visionary leadership on the success of start-ups with the aim of bridging the gap between the theoretical assumptions and the observable realities in the SME sector.