How is Transformational Leadership More Important in Small Businesses

How is Transformational Leadership More Important in Small Businesses

How is Transformational Leadership More Important in Small Businesses

Good leadership is a requirement for businesses to flourish and grow. Transformational leadership is one where the boss joins the workers along with employees. This gives him/her the advantage to actually see what change needs to be implemented or what change the employees need. He/she can then guide the business or employees through inspiration to execute them perfectly.

Team building, motivation, and collaboration are a center focus of transformational leadership. For small businesses that are transitioning into bigger ones, this time of leadership is a vital one.

1. Motivation

article 3

For a small number of employees, with the workload of the whole business, it is vital to keep them motivated. Transformational leadership allows employees to see the hard work and dedication of an employer who is ready to work alongside them. This can develop into a bond and encourage loyalty. A motivated workforce can do wonders to turn a small business into a well-established company.

2. Planning

article bla

Transformational leaders work to look at their businesses’ future. They use their time and make every move toward the end target for their business. Using the time to refine and redefine your plans by working alongside your employees can refocus the businesses’ aims and goals. This helps in keeping true to the mission and completing your short term and long term goals effectively.

3. Growth


Because a transformational leader stays close to the company and its employees as it grows, he/she can steer through any problems that may arise with more support and ease. A detached manager may find it harder to administer a department if it grows larger and larger. Change is easier to accommodate when you are involved and know of problems first hand to deal with them effectively.



An employee may never feel as at ease at a company then under the leadership of an involved leader. If a boss is more open to discussing and solving any issues with the employees, or stays involved in their lives, or inspires them first hand, an employee will be more satisfied and secure to the workplace. This will ensure long-term service and loyalty; ensure cost saved in hiring employees for old positions or training new employees.

5. Performance

5 performance management tasks that are often overlooked

An employee who feels at home at the workplace and is satisfied and encouraged will work to his full potential. A motivated employee who is secure at his/her job will eventually want to give back to the firm. This can encourage maximum production and gain the best results. Also, an employee who stays long term will ensure that turnover is low and training and wasting energy on hiring new employees them does not happen. This will save time and cost resulting in increased overall performance.

6. Competitiveness


In a small business, it is important to stay on top of all employees and ensure productive competitiveness. A small business allows for a close-knit workforce and hence competitiveness exists. However, an employer needs to ensure that it is healthy competition and not one that can create problems for the firm. This can only be achieved if the employer stays involved in his/her workforce’s work lives.

7. Innovations


Due to open doors, an employee is more likely to approach their boss and share ways and ideas to make work easier. This ensures new innovations in the workplace are allowed and take places. The work life can become easier and less burdened and hence more efficient.

Remember, a leader is more effective when he shows that he truly cares about his employees. Good luck in your ventures!