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What’s the Role of a CEO in a Small Business?

small business
A Chief Executive Officer, or CEO, is essentially responsible for every decision that is made within a company. The job can be very demanding, but also very rewarding when the company succeeds because of decisions that were made at the top. Whether the head of a huge corporation or small business, the CEO nevertheless plays a major role in the ultimate success or failure of a company.

Chief Executive Officers are responsible for leading companies through good economic times as well as bad ones, and for working with other levels of management within a company to coordinate all activities including technological, financial and organizational. A CEO plays a big part in a company’s strategic planning no matter the size of the company. In a small business, a CEO’s main role is developing a business plan that clearly identifies the company’s mission and goals. They delegate management responsibilities to others regarding marketing strategies, accounting methods, technology and other areas.

In smaller businesses CEO’s also act as operations managers. In this role the CEO makes sure the company is turning a profit while producing products and services in an efficient manner. They also make sure these products and services are available to customers quickly enough to beat the competition. They keep a close eye on market trends and demands to ensure they stay ahead of other companies. When needed, they establish cost-cutting measures to utilize company resources efficiently.

Of all their responsibilities in a small business, possibly the CEO’s most important duty is to publicize and promote the company and its products or services. The more the buying public is made aware of a company or brand, the more likely profits will follow. Gaining new business is done by being part spokesperson and part goodwill ambassador when dealing with people. CEO’s often represent their company at conferences, stockholder and board meetings and corporate events. To the public, a Chief Executive Officer is the company. By doing television and radio interviews, webcasts and writing articles for trade journals and consumer magazines a CEO is able to generate positive publicity for the company.

Being a good communicator with the public and within the company are critical to a CEO being an effective leader. CEO’s must be able to communicate their vision to employees as well as information about economic or organizational changes that will impact the company. For example, if a company receives negative publicity or has questions regarding layoffs, CEO’s must be able to clearly and confidently communicate to employees whatever needs to be said. They may also announce new business deals as well as new products or services. By being able to convey the latest news and events to employees, a CEO is able to be a very strong leader who will command respect.

The role of a CEO varies within any business, big or small. However, a CEO who is able to demonstrate qualities of communication, leadership and experience will no doubt be able to bring high profits to a company.

About the author:
This has been a guest post from The CEO Magazine, on of Australia’s finest business publications.
Published by Valentine Belonwu

My name is Valentine, founder of this site, an entrepreneur working as a moderator at Bizsugar a small business community news site. Connect with me on Google+ at Valetine Belonwu

189 Comments

  1. Heather Stone · March 11, 2013

    Hi Valentine,
    I think the most important point here is the need for a key decision maker in every business regardless of size. This doesn’t mean, of course, that input from others is ignored, but someone must be in charge of choosing the direction and strategy the company uses when moving forward. Thanks for sharing these important thoughts on leadership with the BizSugar community.

    • Valentine Belonwu · March 11, 2013

      Hi Heather,
      I agree with you because someone must surly be in charge who is able to demonstrate qualities of leadership and experience in order to move the company in a higher level.

      Thanks for your comment 🙂

  2. Neamat Tawadrous · March 12, 2013

    Hi Valentine,

    Great Article.

    I think a CEO means meeting the needs of employees, customers, investors, communities, and the law.

    In short, the duties of CEO is setting strategy and vision and is the one who sets the direction for the team.

    Thanks Valentine for sharing your views about the role of a CEOs and their leadership.

    Be Blessed,

    Neamat

    • Valentine Belonwu · March 12, 2013

      Hi Neamat,
      Every duties of CEO is setting strategy and vision to the company and also to make sure he educate his employees regular in order to make the company more profitable.

      Thanks you for your comment.

      Valentine

  3. Harry · March 12, 2013

    I call CEOs of small businesses Chief Everything Officer. They are responsible for pretty much everything in their business. However, their most important responsibility is to provide vision and strategic direction to the company, hire best employees and delegate appropriately. Only by doing this he will be able to focus on growing the business rather than getting bogged down by day-to-day duties of small business.

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