Scholars, policy makers and analysts have agreed that the future development of any country rests on the shoulders of Small and Medium Enterprises (SMEs). Although SMEs play an important role in developing countries such as Zimbabwe, 85% are expected to fail within the first three years. Many reasons have been outlined as the causes of such a high failure rate with the most notable ones being a dearth in managerial capacity and an inappropriate leadership model. Zimbabwean SMEs have failed to drive economic growth despite the implementation of Western-initiated leadership models. This is why scholars have argued against the applicability of these models and advocated for the establishment and institutionalisation of indigenous leadership models. The current study sought to develop and validate an Afrocentric Effective Leadership (AEL) model for Zimbabwean SMEs. Quantitative research was carried out employing a survey strategy where data was collected using a questionnaire from 241 participants from Bulawayo’s Central Business Area. The study concluded that effective leadership in Zimbabwean SMEs is dependent on ubuntu, culture, history of the country and stage of economic development of the country, intermediated by leaders’ characteristics. It was recommended that leaders should lead in line with the philosophy of ubuntu. They should value group solidarity, good social and personal relations and believe in consensus and compromise.

The growth and success of Small and Medium Enterprises (SMEs) is key to the sustainable development of developing countries such as Zimbabwe where deplorable unemployment rates and gigantic gaps between the rich and the poor are widespread. Although SMEs have the capacity to drive economic growth and act as a panacea to the challenges that have bedevilled many African countries, they suffer from high failure rates caused by lack of managerial skills and inappropriate leadership style. The study sought to identify the predominant leadership styles used by SMEs in Zimbabwe by adopting a quantitative research design where a survey was used. Primary data was collected from 241 participants from Bulawayo’s Central Business Area through the use of a closed-ended questionnaire. The study identified two leadership styles namely selective participation style and directional leadership style that were used by SMEs in Zimbabwe. The study concluded that the predominant leadership style used was the directional leadership style. SMEs leaders are encouraged to identify and use a style that will be appropriate for the situation at hand rather than relying only on one style irrespective of the situation.