Leadership, in today's 21st century, is key to achieving success in all spheres of life. There are various theories in use that involves traits, situational interaction, function, behavior, power, vision and values, charisma, and intelligence among others. This book is based on a research study undertaken to find out the effect of leadership style and employee performance in Small and Medium Scale Enterprises (SMEs) in a developing economy. The objectives are to determine the leadership style of the firms under study, to determine the impact of leadership style in relation to employee performance in the five SMEs, to ascertain the relationship of enterprise with particular leadership style, to determine the interpersonal relationship of managers and employees and to determine the problems encountered by leadership styles in SMEs. The outcome shows that the predominant type of leadership in the five firms is participative democracy, leadership style has effect on employee performance, motivation enhances planning and control, and that type of enterprise is related to leadership style in the firms.