
Have you ever paused to consider how most people learn to be leaders? Leadership often feels like a skill we expect people to master overnight—perhaps the moment they’re promoted to a supervisory role. But here’s the truth: leadership doesn’t magically appear with a new title. Yet, many businesses operate as if a promotion is sprinkled with some sort of magic dust that transforms employees into seasoned leaders. Spoiler alert—it doesn’t.
I recently spoke with someone who pointed out this very issue. They observed how we often assume leadership happens instantly instead of being a cultivated skill. Unfortunately, this mindset persists, even though leadership doesn’t work that way. And what’s even more concerning? Many companies treat leadership development as optional, prioritizing fleeting initiatives over long-term investment in their people.
It’s ironic: leadership and soft skills impact every aspect of a business — customer service, sales, teamwork, and overall performance — yet they’re often deprioritized. Technical skills get the funding, while “soft” skills are dismissed as less important. The result? A technically skilled team that struggles to work together effectively, communicate clearly, or inspire success.
This issue isn’t exclusive to large corporations. In fact, it’s even more pronounced in small and medium-sized businesses (SMBs). And given that SMBs make up 99.9% of U.S. businesses, according to the Small Business Administration, this oversight has ripple effects across the entire economy.
Why Smaller Businesses Ignore Leadership Development
Many SMBs avoid leadership development for a variety of reasons. Let’s explore some common excuses — and why they don’t hold up.
1. “We’re too small to need it.”
This is a myth. Smaller businesses actually need strong leadership more than large corporations. With fewer team members, each person’s performance carries more weight. Mistakes are magnified, and expectations for quality and efficiency are higher. Investing in leadership skills equips your team to operate at a higher level, minimizing costly errors and maximizing productivity.
2. “We can’t afford it because of high turnover.”
This excuse is backward. The fear of investing in employees who might leave is misplaced — what’s truly costly is failing to invest and having unskilled employees stay. By developing your team’s leadership abilities, you not only improve performance but also build a reputation as an employer that values its people. High turnover is often a symptom of disengaged employees; leadership development can change that narrative. Happy, engaged employees stay.
3. “I can handle leadership training myself.”
If you’re the owner or manager and believe you can lead these programs yourself, ask yourself this: Are your employees already disengaged or tuning you out? If your team isn’t following your vision or taking you seriously, they’re unlikely to respond well to you teaching leadership skills. Sometimes, the best approach is bringing in an outside expert who can bring fresh perspectives and unbiased insights.
4. “We can handle this internally.”
Similar to the point above, internal solutions often fall short because they’re too close to the problem. It’s hard to design effective programs when you’re immersed in the company’s challenges. An external facilitator can offer clarity, solutions, and strategies tailored to your team’s specific needs.
5. “It’s too expensive.”
While leadership development may seem like a luxury, consider the alternatives. Many businesses waste money on unnecessary expenses that don’t contribute to the bottom line — executive perks, lavish trips, or overpriced office supplies. In contrast, leadership training offers measurable, long-term benefits: improved productivity, better decision-making, and stronger team cohesion. In reality, it’s one of the best investments you can make.
Leadership: The Foundation of Business Success
Leadership development isn’t a luxury — it’s a necessity. For SMBs, prioritizing leadership is the key to sustainable growth and success. John Maxwell famously said, “Everything rises and falls on leadership.” That’s not just a catchy phrase; it’s a universal truth. Strong leadership drives sales, enhances customer service, boosts innovation, and creates a positive workplace culture.
When SMBs ignore leadership development, they’re leaving untapped potential on the table. The transformational power of leadership programs can ripple across every aspect of your business, impacting not just today but years into the future.
So, the question is: will you empower your team to grow and lead, or will you hold them back? The success of your business depends on your answer. It’s time to make leadership a priority.
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