In small, growing companies, the CEO is usually the founder. The founder is the one who conceived of the business idea, took the risk, and got it going.
Founders come from all sorts of backgrounds. They could be engineers or developers who took their innovations to market. Or they could simply be anyone who has the willingness to pursue a great idea, and the determination to get it right.
I’ve seen many founder/CEOs come from entrepreneurial families. These families encourage their children to go into business for themselves, and to never become employees. Often they do not have a formal education. Instead, they may be self-educated. They are also usually much smarter than the average person. I’ve seen such people become tremendously successful in retail, restaurants, manufacturing, and on-line sales.
There is a point in the growth curve where it is better for the founders to step back and allow professional management to run the company. When this happens, it is essential to find the right CEO. This should be a person who will move the company forward. This is best done while preserving good company culture and whatever else is working. It is also imperative to have good financial reporting and effective internal controls in place.
Most professional CEOs are former CFOs. The reason is because effective CEOs need their financial understanding to be of second nature. This puts them far ahead of the pack in understanding what makes a business successful.