The Relationship Between Transformational, Transactional, and Passive-Avoidant Leadership Styles and Small Business Sustainability

Since 2010, more than 50% of the small businesses have failed to sustain profitable operations past the first year in business. Lack of sustainability is important to small business managers because it can lead to business closure. Grounded in the full range leadership theory, the purpose of this quantitative correlational study was to investigate the relationship between transformational, transactional, and passive-avoidant leadership styles, and small business sustainability. Survey data from 128 U.S. small business construction managers were analyzed using multiple linear regression. The results indicated no statistically significant relationship. A key recommendation is for small business managers to adopt transformational leadership to increase their chances of sustaining their businesses. The implications for positive social change include the opportunity for small business managers to achieve more organizational sustainability and career-advancing opportunities offering the community citizens a more stable labor market