The factors which lead to the failures of Small and Medium Scale Enterprises could be tied to their decision making process, hence their leadership. This study set out to analyze the effect of leadership styles on the performance of SMEs in Kaduna State. The study is based on a survey research design through which data were gathered using structured questionnaire retrieved from 158 owner-managers of SMEs operating in Kaduna State. The data were analyzed using simple linear regression, the result of which shows that democratic and laissez-fair leadership styles both have significant and positive effects on the performance of SMEs in Kaduna State. It was also found that autocratic leadership style has positive effect on the performance of SMEs in Kaduna State; however, it was insignificant. In addition, there is also a significant difference in performance of SMEs based on leadership styles. It was concluded that the three leadership styles have positive effect on the performance of SME. The study recommends that owner-managers should ensure that subordinates should be supervised less closely, with effective employees not given too many orders so as not to get them discouraged from putting in their best, it also recommends that SMEs owner-managers should always adopt democratic and laissez faire leadership styles except where situation warrants the adoption of the autocratic