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Many leadership styles are available, and choose which suits you can be challenging. Before you start thinking about which one is best for you, it’s essential that you have a good understanding of yourself and your team members.

Creative teams and small businesses can benefit from collaborative or democratic leadership styles. On the other hand, for larger service-based organizations, an authoritative style is ideal. In this article is a list of leadership styles that small business owners can utilize. 


Most managers are naturally strategic when it comes to their thinking. In a strategic leadership style, the focus is on the bigger picture and the vision. This type of leadership differs from micromanagement, involving everyone in the process.

If you plan on implementing this type of management style, ensure that your team members are good at filling in the blanks regarding project management. This type of management will not work if they cannot run with the vision.


Another type of leadership style that is commonly used is democratic management. This type of leadership involves team members throughout the process of making decisions. Although the process may not last as long as casting votes, leaders still consider all viewpoints before reaching a final decision.

A confusing decision-making process can occur if the proper systems aren’t in place to gather input. Employees may not be able to provide helpful suggestions in every instance if they don’t have all the necessary facts.


Unlike democratic management, an authoritative style is more like a manager. This leader has the necessary skills and experience to make informed decisions. They are the one who directs the team, and they expect their subordinates to follow their instructions.


One of the most popular leadership styles is transformational management, which is fluid and agile. This style is ideal for creative environments, as it constantly encourages businesses to look for new ways to improve their operations.

The downside of this management style is that it can leave employees with conflicting ideas about implementing new procedures. You’ll also have to find a more transformational team to guide you through changes.


Although democratic management is commonly used, the collaborative management style goes beyond this type of leadership by working alongside the team members throughout the process. This type of style is often seen in start-up businesses.