The top 3 pain points in 2025 for small- to medium-sized businesses

Steve Van Remortel

Guest Columnist

February 24, 2025

As we enter 2025, small- to medium-sized businesses (SMBs) continue to navigate a challenging business landscape.

Growth remains a top priority, but many SMB leaders find themselves struggling with persistent pain points that hinder their progress.

To better understand these challenges, we surveyed SMB leaders to identify the top three issues keeping them from achieving their company’s full revenue potential, which include:

• Lack of accountability and productivity
• Stuck in the day-to-day
• People-related issues – which are not just barriers but opportunities for meaningful change

Let’s dig in.

Lack of accountability, productivity

For SMBs, accountability and productivity are lifelines to success.

Yet, more than 70% of the population is people-oriented, which can often lead to a reluctance to have tough conversations – like accountability.

Gallup estimated that $1.9 trillion was lost in productivity in 2024 just to unhappy employees. 

This struggle is amplified in SMBs, where limited resources demand maximum efficiency to grow the top and bottom lines.

Teams often avoid tough conversations, fearing the discomfort they might bring.

But without these conversations, execution falters.

Businesses that grow are those that excel at execution, and high-performing teams thrive on holding each other accountable.

However, some SMBs may lack a solid system to ensure accountability is more than a buzzword – it’s a practice.

The reality is that accountability is not just about conflict but about clarity and commitment.

Without it, productivity suffers.

In an environment where every resource counts, a lack of accountability and productivity can stagnate growth and limit potential.

The challenge for SMB leaders is clear – how can they create a culture where accountability is embraced and they crush it on productivity?

Being stuck in the day-to-day

Ask any SMB leader how they spend their time, and you’ll likely hear a familiar complaint: too much of it is consumed by the daily grind.

Working “in” the business – managing day-to-day operations – is essential, but it’s not enough to drive meaningful growth.

The real progress happens when leaders can work “on” the business, focusing on strategies that advance the organization forward.

As one leader said in the survey: “Team members default to the day-to-day to fill time and are not comfortable delivering on the big items”

How much time do you spend “on” the business?

Consider this suggested breakdown of how time should ideally be allocated for SMBs:

• CEO/president – 70% working on the business, 30% in the business
• VP level – 50% on, 50% in
• Managers – 30% on, 70% in
• Entry-level/production team members – 10% on, 90% in

As the survey points out, unfortunately, most leaders find this balance tipped the wrong way.

They’re pulled into the minutiae of daily operations, leaving little room for strategic thinking, innovation or planning. 

The higher a leader’s position in the organization, the more critical it becomes for them to focus on the bigger picture. 

Yet, many admit they don’t spend enough time on the one thing that could accelerate company growth: working “on” the business.

This pain point highlights a profound challenge for SMBs. Leaders must find ways to break free from the operational hamster wheel, allowing them to invest their energy where it matters most—on the strategic growth of their people and business.

People-related issues, communication

At the heart of almost every business problem lies a people-related issue.

From hiring and retention to communication and leadership development, people are the foundation of any SMB’s success.

But for many SMBs, people-related challenges are pervasive.

Some teams struggle to have honest, open and transparent (HOT) conversations that are necessary to resolve the core issues and enable growth.

Without these conversations, critical challenges remain unresolved.

Other common people-related pain points include:

• Turnover and bad hires – 80% of turnover is caused by a bad hire.
• Low role clarity – Employees are unsure of their responsibilities, leading to inefficiencies and frustration.
• Poor performance reviews – Feedback is vague or inconsistent, failing to drive improvement and, more importantly, focus and motivation.
• No future leaders – Succession planning is overlooked, leaving companies vulnerable to inconsistent leadership and disruption.
• Lack of a talent strategy – No clear plan for attracting, developing and retaining top talent.

As one SMB leader surveyed said: “I can’t get to the important stuff on the list because I haven’t been able to hand off the day-to-day activities I get sucked into.”

Excelling at the people-side of the business for SMBs is not a nice-to-have, it is a must-have. 

Having the wrong fit for one or even two positions on your team can limit the potential of your team and business.

The SMBs that dominate their industries are those known as great places to work.

They win at talent.

Conclusion

These three pain points represent not an obstacle but an opportunity for you in 2025.

Having the right team that is highly productive working “on” the business is the formula to accelerate the growth of your people and business to a record year.

Here’s to crushing it on the top three pain points in your business in 2025 and achieving record growth.