New Research Shows Small Business Owners Prioritize Sustainability Over Growth
Recent research by author and business coach Mosongo Moukwa challenges conventional wisdom about small business entrepreneurship, suggesting that owner-managers are more focused on survival and sustainability than growth. This study, conducted over two years with 60 small business owners across the United States, highlights a significant shift in priorities amid economic uncertainty.
“This study challenges conventional economic views that small businessmen are driven to grow and increase profits,” said Moukwa. “Instead, they are prioritizing financial stability and controlling inflation. Understanding these motivations allows us to support small businesses more effectively, especially during times of economic uncertainty.”
The survey included small businesses with at least five employees, with the largest number employing 15. Its findings underscore the widespread emphasis on resilience and stability, suggesting that long-term survival is often valued over aggressive growth strategies.
Moukwa’s findings come at a time when small businesses are facing major challenges. According to the Bureau of Labor Statistics, 20% of small businesses in the United States fail within their first year, and nearly half fail within five years.
These pressures highlight the importance of strategies that align with the motivations of small business owners. “Policies that focus on stability and financial advice can help strengthen small businesses, making them long-term success rather than short-term growth,” the study suggests.
This study calls for policy makers and financial institutions to rethink their approach to supporting small businesses, away from growth-oriented approaches. By prioritizing stability and sustainability, policies can better address the realities of small business operations.
Moukwa’s research also emphasizes the need for complementary resources, financial advice, and policies that address the sector’s unique challenges. This includes adapting to economic fluctuations such as inflation and labor shortages while focusing on sustainable practices that align with the goals of small business owners.
Photo: Envato
