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SMEs throughout the globe are severely impacted by several challenges that impede the performance of
entrepreneurs. Thus, the purpose of this paper is to identify the impact of leadership style on Libyans’ Small and Medium
Enterprises (SMEs) performance. Required data was collected through a random method and a questionnaire administered
on 258 managers of Libyan SMEs. This research suggested that Leaders must invest in training and development in order to
advance their skills and abilities to carry out transformational and transactional leadership styles in their businesses.