Why do small business owners call themselves CEOs?

The Nomenclature of Effort: Why Small Business Owners Call Themselves CEOs

The title of chief executive officer, more commonly known as CEO, has traditionally been reserved for the highest-ranking individual in a company's hierarchical structure, running large organizations with hundreds, if not thousands, of employees. In recent times, however, a growing number of small business owners have begun bestowing this prestigious title upon themselves. Some might be quick to smirk or shake their heads disapprovingly at what could be perceived as an overinflation of ego or a misguided sense of self-importance, but I argue that it's not as absurd or pretentious as it might seem at first blush. This trend of micro-business owners dubbing themselves CEOs actually serves an important purpose, one that warrants explanation and understanding.

Redefining the Concept of the CEO

Believe it or not, the term CEO is not legally bound to any specific size or scale of an organization. Instead, it's more a designation of functional leadership than corporate size. Small businesses might not be beholden to shareholders or board members like their larger counterparts, but their owners still do oversee all operations, make critical decisions and bear the consequences thereof. In that sense, their roles are no different from the traditional CEOs of large corporations. By choosing to identify as CEO, small business owners are consciously working to redefine the concept of what it means to be at the helm of an enterprise, opening up the title for broader application and interpretation.

The Motivation Behind the Title

Now, why exactly do small business owners label themselves thus? Well, motivation varies between individuals, but a common thread that weaves them together is the sense of personal achievement and recognition that comes with the title. For these entrepreneurs, choosing to call themselves CEOs is a symbolic affirmation of their hard work, dedication and the risks they've taken to establish and run their businesses. It's a badge of honour, a form of external validation, and a testament to their capabilities as leaders.

Psychological Impact

The use of the CEO title also has a significant psychological impact on both the business owners themselves and their interactions with others. When a small business owner assumes the label of CEO, it subtly shifts their mindset, lending a grander vision to their business and their role within it. It encourages them to adopt a broader perspective, requiring strategic thinking, planning and decision-making, akin to the responsibilities of a traditional CEO. In this way, the title can act as a catalyst for personal growth and development, stretching the individual to expand their capacities and rise to the expectations associated with the role.

Perception and Public Image

The CEO title also influences how small business owners are perceived by others. By presenting themselves as CEOs, they project an image of professionalism, competence, and seriousness that can help build trust and credibility with clients, suppliers, investors, and other stakeholders. It conveys a level of stability and reassures these external parties that the business is being managed with a level of thoughtfulness and sophistication typically associated with larger companies.

The Caveats and Considerations

Of course, with power comes responsibility. While many small business owners thrive under the mantle of CEO, others might find it overwhelming or unnecessarily grandiose. Moreover, there are risks of alienating customers or colleagues who might perceive the title as a case of corporate pretension - sort of like awarding yourself a knighthood because you won a game of chess. It's important that the title of CEO is not just a nominal adornment, but reflects in the operational and dynamic reality of the business. Above all, a CEO—no matter how small the business—must be prepared to wear this mantle with dignity and authenticity, as it requires one to act and think like a CEO, embodying the core values and mission of their organization.

As for me, I remember when I started my first small business in Melbourne here, a cozy little café that only had three tables to start with. I proudly called myself CEO, even if I also had to be the barista, waiter, cleaner, and accountant all at once. Was it a bit cheeky? Maybe. But adopting that title provided me a sense of purpose and direction in my endeavor, helping me see not just what my business was at that time, but what it could become.

In Conclusion: The Value of Self-Identification

Ultimately, the choice to identify as CEO is a personal one, determined by an individual's aspirations, confidence, and sense of self. Small business owners calling themselves CEOs signifies not an inflated ego, but a testament to the arduous journey they've sailed and the high seas they continue to navigate. It's their salutation of own achievements and an acknowledgment of the multifaceted, demanding role they play in running their businesses.

Now, each time you see a small business owner introduce themselves as the CEO, I hope you can understand the layers of meaning embedded within this choice of title, rather than dismiss it as a vanity play. For these individuals, it's not only a title but also a recognition of their hard work, sacrifice, and relentless pursuit to fulfill their entrepreneurial dreams. And I say, power to them!