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A recent study by best-selling author and business coach Mosongo Moukwa challenges conventional assumptions about small business financial motivations, suggesting that owner-managers are more focused on survival and stability than on growth. Conducted over two years with 60 small business owners across the United States, the research highlights a critical shift in priorities amidst economic uncertainty.
“This research challenges the traditional economic assumptions that small business owners are solely driven by growth and profit maximization,” said Moukwa. “Instead, they prioritize financial sustainability and control over expansion. Understanding these motivations allows us to support small businesses more effectively, especially in times of economic uncertainty.”
The study involved small businesses with at least five employees, with the largest employing 15. Its findings underscore a 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 face significant 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. “Stability-focused policies and financial advice can help bolster small businesses, enabling long-term success rather than short-lived growth spurts,” the study suggests.
The study calls for policymakers and financial institutions to rethink their approach to small business support, shifting away from growth-centric models. By prioritizing stability and resilience, policies can better address the realities of small business operations.
Moukwa’s research also emphasizes the need for tailored resources, financial advice, and policies that account for the sector’s unique challenges. This includes adapting to economic instabilities such as inflation and labor shortages while focusing on sustainable practices that align with the goals of small business owners.
Image: Envato
