Introduction Leadership is a critical ability that enables one to influence others in accomplishing an objective. In business, leadership entails strategic thinking in fulfilling a task to attain the objective of the organisation. Leadership skills play a crucial role in determining the performance as organisations operate in the market and compete against each other. Successful leaders are able to solve problems, understand people and the social systems clearly, as well as be in a position to accumulate knowledge for purposes of organising information. This paper seeks to discuss the concept of leadership. The paper discusses the significant role of leadership in business, leadership advantages in the industry, and its importance in business. Leadership Approach The Trait Approach Leadership traits refer to comparatively stable, along with logical, combinations of personal characteristics. All these encourage consistent leadership performance (Zaccarro et al., 2004, p. 104). The trait theorists looked at leadership on the basis of the characteristics that are commonly exhibited by individuals. Among the notable traits highlighted by this school of thought include drive, leadership motivation, honesty and integrity, understanding business, as well as self-confidence and cognitive skills. The drive trait is a compound characteristic that involves achievement, ambition, energy, and motives. Additionally, it also reflects on tenacity and initiative with regard to high effort level (Daft, 2008, p. 38). The leadership motivation trait, on its part, emphasizes the need for leaders to possess a strong desire that can effectively influence the actions and thoughts of others. Honesty and integrity must be present for the leaders and their followers to build a formidable foundation of trust between them (Derue et al., 2011, p. 7). Great Person Theory This theory came into existence in the early 1900s as early researchers on leadership attempted to study the concept. In particular, this school of thought focused on establishing inherent characteristics and qualities that leaders possessed. It considered various leaders who existed at the time in society, including social, military, and political leaders. The trait theory, however, has witnessed a shift in its general perspective, with researchers concentrating mainly on traits that interacted with the situational demands that leaders faced in the period between 1930 and 1950s (Great Person Theory Of Leadership, 2010, n.p.). The perspective shifted to personality and behaviours between the 1970s and the early 1990s, with the main focus being on the revival of the significant role of traits with regard to leadership effectiveness. Five Factor Personality Model This theory identifies five personality factors that it describes as crucial for any leader. They include neuroticism, extraversion, and openness, in addition to agreeableness and conscientiousness. An effective leader must exhibit strong extraversion qualities, which imply being highly sociable and assertive. The next important personality characteristic that a leader has to exhibit is conscientiousness, which means being thorough in one’s performance and roles and exhibiting high l