Interviews with the chief executive officers of 14 small businesses revealed the leadership challenges that they face. Some of the challenges are the following: (1) creating change; (2) building a robust organization, with a well-defined structure, an effective management team, plans for succession, established delivery systems, and people who have mastery of their jobs; (3) dealing with employee concerns; (4) building solid client/customer relationships; and (5) providing resources. A comparison of the small business leaders' responses to these challenges offers an explanation for the differences in leadership response and the implications these differences have for the leadership development of people running small businesses. Analysis also shows that small business leaders have leadership development needs such as the following: learning to deal with the meshing of family and business relationships; improving the selection and training of top management; developing the ability to be a follower when necessary; developing the ability to work effectively with rules; and creating a learning network for themselves. (Names and companies of the chief executives interviewed are provided.) (KC)