If you’re an SME leader, chances are you’ve worn more hats than a Melbourne Cup crowd. One minute you’re the CFO, the next you’re HR, IT support, barista, and chief therapist.
It’s exhilarating but also exhausting.
While small and medium-sized businesses are the lifeblood of our economy, many are quietly struggling with two big things: business performance and their people.
Let’s unpack why — and more importantly, how to shift it.
1️⃣ Stuck on survival mode
Many SMEs are stuck firefighting, chasing daily fires instead of future growth. Time and emotional energy are spent on keeping the lights on rather than planning for tomorrow. Strategic growth plans often gather dust behind the ever-growing “Urgent” pile.
The fix: Block time in your calendar for just “thinking.” Even small, regular blocks can get those big-picture gears turning again.
🧩 Resource: Donna McGeorge’s work on productivity is excellent — especially her Fast Company article: “The most undervalued asset for a leader? It’s these 2 hours.”
2️⃣ Too many hats, not enough hands
SME leaders often juggle everything — leaving culture and people development at the bottom of the list. Many wait to invest in HR or People & Culture until there’s a crisis… by then, it’s often too late.
The fix: Delegate or outsource lower-value tasks. Prioritise people and culture early — it’s a strategic investment, not a “nice to have.”
Not ready for a full-time hire? A fractional HR consultant brings expertise without blowing the budget. Already have HR? They can boost capacity, tackle big projects, or coach your HR talent.
🧩 Resource: Follow Tasha Eurich (and EHQ 😉). Her work on self-awareness and leadership effectiveness is incredibly practical.
3️⃣ Talent tug-of-war
SMEs often can’t match corporate salaries — but today’s employees want purpose, flexibility, and growth. These are areas where SMEs can win.
The fix: Show and tell your “why.” People want to work for something meaningful.
🧩 Resource: Simon Sinek’s Start with Why — timeless.
4️⃣ Flying blind with feedback & performance
Without structured feedback, small issues snowball into big ones.
The fix: Start with regular one-on-ones and pulse surveys. Teach simple feedback frameworks like SBI (Situation–Behaviour–Impact) so feedback becomes normal, not awkward.
Think of feedback like a muscle — the more you use it, the stronger your team becomes.
Tip: Always acknowledge feedback and close the loop. If you don’t, people disengage.
🧩 Resource: Follow Dr. Amy Edmondson for brilliant content on psychological safety.
5️⃣ Change? No thanks!
Change fatigue is real, especially in SMEs running at capacity.
The fix: Involve people early, communicate the why clearly, and connect change to purpose. Celebrate small wins to keep momentum.
🧩 Resource: Mel Loy shares practical tips on change communication.
6️⃣ Leadership growing pains
Many SME leaders excel technically but leading people requires a different skill set. Without the right tools, misalignment and tension build quickly.
The fix: Invest in leadership development that’s practical and human-focused. Leaders shape your culture — and ultimately every business outcome.
Tip: Don’t forget middle managers — the “glue” of your organisation. They carry the highest load yet get the least support.
🧩 Resources:
• Brené Brown on courage & leadership
• EHQ’s The Shift Program for emerging and established leaders
7️⃣ Culture left to chance
Many SME owners care deeply about people, but culture often stays as nice words on a poster.
The fix: Bring values to life in hiring, promoting, recognising, and performance discussions. Culture becomes real when values are lived — not laminated.
🧩 Resource: Garry Ridge (ex-WD-40 CEO) and Mary C. Murphy’s Cultures of Growth.
✨ The opportunity
SMEs have a superpower: agility. Small, intentional shifts today create massive impact tomorrow.
Ready to move from surviving to thriving? Let’s build a purpose-driven, people-first future together.
👉 Follow EHQ for practical insights on People, Culture & Leadership.
👉 Want support putting strategies into action? Reach out for a confidential chat.
👉 Explore The Shift — our leadership development & coaching program.
Short LinkedIn Post
Many SME leaders wear all the hats — CFO, HR, barista, therapist (sometimes all before morning tea!). But while they’re busy keeping the lights on, challenges around business performance and people can quietly pile up.
In our latest blog, we unpack why SMEs struggle with performance and culture — and the small shifts that can create big impact.
✨ Ready to move from surviving to thriving?
👉 Read the full post and follow EHQ for more practical, people-first insights.
