Family run textile businesses are vital in developing countries and especially in Pakistan. However, external and internal environmental influences shape and direct their organizational leadership, which in effect jeopardizes their very existence. An exploratory, qualitative, phenomenological and interpretive study, which was undertaken within a family run textile company to identify the factors influencing leaders, the challenges faced, and opportunities presented, indicated that: a) externally leadership is influenced by inadequate raw materials management, inadequate cost of production, governmental policies, the removal of the WTO's quota regime, inadequate governmental support, and CSR practices; whilst: b) leadership is internally influenced by inadequate product quality and branding, and human resources structure.