New Study Unpacks Financial Motivation of Small Business Owners, Favoring Financial Sustainability Over Growth
A recent study conducted by business coach and author, Mosongo Moukwa, has revealed that the primary financial motivation of small business owners lies in ensuring the survival and stability of their firms, rather than prioritizing growth and profit maximization. The findings, which were unveiled at a critical time for small businesses facing economic uncertainties, have sparked a timely debate on the need for policymakers to reevaluate their assumptions about small business motivations.
Conducted over two years, the study surveyed 60 small business owner-managers across the United States, with a minimum of five employees and the largest employing up to 15. The results challenge traditional economic assumptions that small business owners are solely driven by growth and profit maximization, instead highlighting their priority on financial sustainability and control.
"Instead of solely focusing on growth and profit maximization, these small business owners prioritize financial sustainability and control," said Moukwa. "Understanding these motivations allows us to support small businesses more effectively, especially in times of economic uncertainty."
The findings are particularly relevant given the current economic climate, with nearly half of all U.S. small businesses failing by their fifth year and around 20% failing within their first year. Additionally, approximately 550,000 small businesses in the United States close each year, with inflation and labor shortages among the primary pressures.
Researcher Moukwa stresses that policymakers should reconsider growth-focused assumptions and create financial strategies tailored to address the needs of small businesses. He emphasizes the need for alternative strategies that focus on stability, particularly as the small business sector seeks ways to manage economic instability without prioritizing growth exclusively.
Moukwa's findings point to a larger requirement for resources, policy, and financial advice that prioritize stability, meeting the fundamental beliefs of small business owners and enabling more solid, long-lasting success. As the small business sector navigates economic challenges, Moukwa's research provides valuable insights into alternative approaches that can promote lasting success.
About Mosongo Moukwa
Mosongo Moukwa is a best-selling author and leading business coach specializing in helping small business owners tap into six-figure revenue without increased advertising spend. Through personalized coaching, Moukwa empowers entrepreneurs to focus on financial sustainability and resilience, enabling them to achieve lasting success, free up their time, and prioritize relationships with loved ones.