Entrepreneurs in many small firms could not be experts in only one specific functional area but are required to operate across the range of management competencies; the applicability of competence-based MTD (management training and development) to the broader roles of entrepreneurs in small businesses is likely to be greater than to the roles of many entrepreneurs in large organizations. Competence based analyses of managerial work is causally related to effective and/or superior job performance. Different strategies, techniques, styles of leadership have been evolved to manage people effectively. However, success can be achieved through the use of particular style. Entrepreneurial Managerial behaviour of all employees’ categories in an organisation is an essential component of success in the present day competitive environment. Leaders of the organisation have to understand the logic behind this ideology and accordingly nurture Entrepreneurial Managerial behaviour among their employees. This research finds out that there is a perfect positive relationship between Transformational leadership and Entrepreneurial Managerial Behaviour.