Scholars, policy makers and analysts agree that the future development of any country rests on the shoulders of Small and Medium Enterprises (SMEs). However, despite the enormity of benefits that can be realised from SMEs, research shows that the majority are plagued by a high failure rate blamed largely on a dearth in managerial skills and ineffective leadership. This calls for continuous assessment of leadership effectiveness so that remedial action can be taken where leadership is found to be ineffective. The purpose of the study was to assess the effectiveness of leadership in Zimbabwean SMEs. Quantitative research was conducted using a survey strategy. Primary data was collected using a closed-ended questionnaire from 241 participants from Bulawayo’s Central Business Area. The study concluded that leadership was not effective in Zimbabwean SMEs. In order to engender effective leadership, SMEs leaders are encouraged to reward employees when they do what is expected of them. They should come up with novel ways of keeping employees motivated, engaged and committed over and above rewarding them. SMEs leaders should devise mechanisms to help employees move ahead in their careers.