The Effect of Leadership Style on the Job Satisfaction of Micro and Small Enterprises

S A R I P A T I Vol. 13 | No. 1 ISSN: 2089-6271 | e-ISSN: 2338-4565 | https://doi.org/10.21632/irjbs

The major factors that determine both success and failure of Small Business include substantive and legitimate, learning strategies and leadership behaviors that may be among the principal reasons why some small businesses succeed while others fail to understand the learning strategies, leadership knowledge, and skills used by successful small business leaders (SSBLs). The objective of the study is to reveal out the relationship between leadership style and job satisfaction of MSEs at western oromia, Ethiopia.Stratified random sampling was used to get information from different sizes of the MSEs. selected from Manufacturing, service, agriculture, construction and trade sectors on proportional basis. Accordingly, 334 respondents were selected from the total of 1931 MSEs. Finally, the study revealed out that that there is statistically significant relationship between leadership style and job satisfaction. Also, the more exercising transformational leadership style, there would be more possibility of enhancing level of job satisfaction of MSEs.

INTRODUCTION
According to Okumbe (1998), leadership is a process of encouraging and helping others to do something of their own wish, neither because it is required nor because of the fear of consequences of non-compliance. Therefore, it is thus a process of initiating and supporting fellow subordinates to achieve organizational objectives. It is the human factor that make group members highly conjugate together and being inspiring them in order to actualize group's potentials into reality. Successful small business leaders (SSBLs) need a strong leadership style that endows both transactional and transformational knowledge and skills. The objective of the study is to reveal out the relationship between leadership style and job satisfaction of MSEs According to Ames (1983) and Goltz (2011) the major factors that determine both success and failure of Small Business include substantive and legitimate, learning strategies and leadership behaviors that may be among the principal reasons why some small businesses succeed while others fail to understand the learning strategies, leadership knowledge, and skills used by successful small business leaders (SSBLs)

Statement of the problem
Successful leaders would deal with a shared vision and share it with others, empowering their subordinates in order to give attention on the final results (Covey, 2004;Kouzes & Posner, 2012). In other words, if need arise to achieve goals, leaders should be expected to make the future through setting a vivid vision. Being a leader requires the existence of followers and inspiring those followers to accept the leader's vision as their own. Leaders must not only create a vision but eloquently share the vision with others. "It is argued that, leadership is a dialogue, not a monologue" (Kouzes & Posner, 2012, p. 11). The leader must enlist the support of  (Valdiserri & Wilson, 2010). It is the SSBL's role to influence how employees achieve goals (Peters, 2005). Vladiserri and Wilson (2010) found transformational and transactional leadership styles have a significant impact on small business organizational profitability and success. Hence it is possible to infer that, the leader should take in to due consideration the organization's goal whenever he/she undergoes delegation of tasks in order to enhance the prospect of innovation and growth. Therefore, this study revealed out the relationship between leadership style and job satisfaction of MSEs at western oromia, Ethiopia.

Objective of the study
The objective of the study is to assess the relationship between leadership style and job satisfaction of MSEs at western oromia, Ethiopia

Job Satisfaction
The concept of job satisfaction has been defined in various ways by different researchers. Of course, the concept of job satisfaction lacks consensus among researchers. Accordingly, Lawler describes job satisfaction as the difference between all those things a person feels he should receive from his job and all those things he actually does receive (Lawler, 1973). As per Locke job satisfaction defined as an excitement emotional state which is emanated from the appraisal of one's job as achieving or facilitating the achievement of one's job values, (Locke, 1969). Also Spector defined job satisfaction as the degree to which people like (satisfaction) or dislike (dissatisfaction) their jobs (Spector, 1985;Spector, 1997). The lack of consensus which appears in defining the concept may lead to misunderstandings among researchers and researches' participants and may influence the construct validity of its measurement (Evans, 1998).

Research Design and Population
The study employed explanatory research design in order to reveal the relationship between variables with an aim of estimating the integrated influence of the factors on job satisfaction. And also had made use of cross-sectional design in the sense that all relevant data had been collected at a single point in time.
The study was conducted at western Oromia,

Ethiopia.The rationale behind choosing western
Oromia is due to the existence of more number of micro and small enterprises (MSEs) than eastern, southern and central oromia. According to oromia regional state statistical abstract (2014), about 42% of the total micro and small enterprises in the region are found in West Oromia zones. Therefore, cities such as: Metu, Nekemte and Jimma were chosen due to the fact that they contained larger urban population than other western oromia towns.

Sampling Technique
Stratified random sampling was employed to get information from different sizes of the MSEs. This technique is preferred because it is used to assist in minimizing bias when dealing with the population. Stratified random sampling was used to get information from different sizes of the MSEs. selected from Manufacturing, service, agriculture, construction and trade sectors on proportional basis. Accordingly, 334 respondents were selected from the total of 1931 MSEs from stratified sample respondents being utilizing probability sampling method. That is, an appropriate formula that has been used for the calculation of the sample size since it is relevant to studies where a probability sampling method is used (Watson, 2001).

Data Analysis
The data that has been collected was edited and processed. Also logistic regression had been employed in order to analyze the data. Accordingly, the relationship and the impact between independent and dependent variables were revealed out.

RESULTS AND DISCUSSIONS
Chi-square test for leadership style and job satisfaction Hypothesis 1 states, there is no any statistically significant relationship between leadership style and job satisfaction.
As it is illustrated on the