Growthink Blog

Chief Executives and Chief Shareholders: Never the Twain Shall Meet?


Small business owners normally lead what are the most efficient and effective organizations ever designed by human hands: profit-seeking businesses where the chief executive also happens to be the chief (as in, largest) shareholder, too.

This has its benefits, chief among them that it avoids the agency problem, where the interests of the professional managers do not always sync and align with those of the shareholders.

In most circumstances, what is best for the managers of a small business is what is best for its shareholders, as they are normally one and the same.

But there are scenarios where this is decidedly not the case.

To read my full article from this week’s Entrepreneur Magazine as to what these scenarios are, click here.

Share this article:

Most Popular
New Videos

"Business Plan

If you want to raise capital, then you need a professional business plan. This video shows you how to finish your business plan in 1 day.

to watch the video.

"The TRUTH About
Venture Capital"

Most entrepreneurs fail to raise venture capital because they make a really BIG mistake when approaching investors. And on the other hand, the entrepreneurs who get funding all have one thing in common. What makes the difference?

to watch the video.

"Brand NEW
Money Source?"

The Internet has created great opportunities for entrepreneurs. Most recently, a new online funding phenomenon allows you to quickly raise money to start your business.

to watch the video.

"Old-School Leadership
is DEAD"

"Barking orders" and other forms of intimidating followers to get things done just doesn't work any more. So how do you lead your company to success in the 21st century?

to watch the video.

Blog Authors

Jay Turo

Dave Lavinsky