Abstract
The effectiveness of leadership in a small business is determined by the preferred leadership style, relevant goals, the presence or absence of informal leaders in a team, the manager’s ability to resolve conflicts and involve team members in business participation. The decrease in efficiency and lack of enthusiasm among staff may be an indication that the leadership style is not quite right. Business must be balanced in terms of business skills, competence and orientation (for a task or for people). Requirements for professional qualities, as well as business goals, are constantly changing with changing environments.
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