After decades of working with small businesses, I've witnessed a troubling pattern: the harder entrepreneurs try to maximize efficiency, the less efficient they become. This efficiency paradox plagues businesses of all sizes, but it's devastating for small companies where every resource counts. McKinsey research shows that small and medium businesses operate at 50% of the productivity of large firms - a gap that stems from misguided efficiency efforts. Understanding and resolving this paradox can transform how you operate.