Five Skills Every Small Business Owner Needs in 2025

Finding Your Leadership Path

“I thought owning a business meant freedom,” Jake thought to himself, slumped over his desk late one night. “But I’m working harder than ever, and I’m not even sure I’m doing it right. I don’t know the necessary top leadership skill for small business owners.”

Jake had recently taken over his family’s small business, brimming with ambition but quickly feeling overwhelmed by the sheer weight of responsibility. Employees looked to him for guidance, customers demanded more than ever, and he couldn’t shake the feeling that he was in over his head.

Jake’s story is all too common. According to the Small Business Administration (SBA), only about 50% of small businesses survive beyond five years. The key to beating the odds often lies in strong leadership—the ability to inspire, adapt, and strategize effectively.

So, what leadership skills should small business owners like Jake focus on to thrive in today’s fast-paced market? Let’s explore the top five.

SKILL 1: Effective Communication

Clear, precise communication is the cornerstone of effective leadership. It’s not just about speaking; it’s about listening, understanding, and ensuring your team, customers, and stakeholders are on the same page.

“Great leaders inspire action by clearly articulating their vision.” – Patrick Lencioni

Why It Matters: According to a study by Salesforce, 86% of employees and executives cite ineffective communication as a leading cause of workplace failures.

Example: Jake learned to hold weekly check-ins with his team, setting clear expectations and encouraging open dialogue. As a result, his team’s productivity and morale improved.

SKILL 2: Adaptability and Resilience

The ability to pivot and adapt is essential in today’s ever-changing business environment. Resilience helps leaders weather setbacks without losing sight of their goals.

“Endurance is not just the ability to bear a hard thing, but to turn it into glory.” – G.K. Chesterton

Why It Matters: Research by McKinsey found that companies with agile leadership are 70% more likely to outperform competitors during times of change.

Example: When supply chain issues arose, Jake adapted by sourcing local vendors, keeping operations running smoothly while building stronger community ties.

SKILL 3: Vision and Strategic Thinking

A clear vision acts as a compass, aligning the team and focusing efforts on what truly matters. Strategic thinking ensures every decision contributes to long-term success.

“Good is the enemy of great.” – Jim Collins

Why It Matters: According to Harvard Business Review, 70% of employees are more engaged when their leaders share a clear vision.

Example: Jake set quarterly goals for his team and regularly revisited his business plan, ensuring every project aligned with his long-term vision.

SKILL 4: Empathy and Emotional Intelligence

Understanding and addressing the needs of employees and customers fosters loyalty and trust. Emotional intelligence helps leaders navigate conflicts and maintain a positive work environment.

“People don’t care how much you know until they know how much you care.” – Dr. John Maxwell

Why It Matters: A study by TalentSmart showed that 90% of top performers have high emotional intelligence.

Example: Jake started celebrating team milestones and checking in on employees’ well-being, creating a culture of trust and support.

SKILL 5: Decision-Making and Problem-Solving

The ability to analyze situations, weigh options, and make confident decisions is critical. Effective leaders embrace challenges as opportunities for growth.

“Seek first to understand, then to be understood.” – Stephen Covey

Why It Matters: According to PwC, 60% of CEOs say decision-making has become more complex in recent years, making this skill more important than ever.

Example: Jake implemented a decision-making framework, enabling him to tackle challenges systematically and with confidence.

Moving Forward with Confidence

Terry Porter is an Executive Life Coach. Working with clients to clarify and pursue their life dreams.

Jake’s journey from overwhelmed to empowered didn’t happen overnight. He invested in developing these key leadership skills and sought guidance from a leadership coach. Today, Jake’s business is thriving, and he feels equipped to handle the challenges that come his way.

Are you, like Jake, ready to take your leadership skills to the next level? Coaching can provide the tools and support you need to thrive.

Call to Action

Let’s start a conversation about your leadership journey. I offer free coaching consultations to explore how we can work together to help you and your business succeed.

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You have what it takes to lead with confidence. Let’s build the future you envision—together!