Narcissistic Behaviour in Business: A Hidden Risk for SMEs

A taboo topic acknowledged by most but seldom discussed.

In small and medium-sized businesses, leadership style has a big impact. Narcissistic behaviour can look like confidence or “just being driven” — but over time, it damages trust, morale, and long-term success.

In SMEs, where teams are tight and culture matters, this behaviour is especially costly.

How to Spot It

- Always needing to be right or praised

- Shutting down feedback or dismissing team input

- Blaming others when things go wrong

- Prioritising image over real impact

Fortunately, full narcissistic personality disorder is rare. However, there is a spectrum of behaviours, all of which are toxic. 

Often it goes undetected in larger organisations but in the SME sector the impact is more immediate and severe and often these smaller organisations struggle with the requisite skills to address these behaviours.

What You Can Do

- Set clear expectations and shared values from the top

- Make space for honest conversations and constructive feedback

- Reinforce accountability — no one, including the founder, is above it

- Foster a culture where collaboration is valued over ego

Strong leadership isn’t about being the loudest in the room — it’s about creating space for others to thrive, owning mistakes, and leading with self-awareness.

In a Kiwi SME, that kind of leadership isn’t just good practice — it’s make or break.