Success in Meeting Business Goals and Owner Satisfaction

A question many small business owners may wonder in the midst of a downturn is whether it is “worth it” (see next section on economy). A first look into the answer is the degree of success small business owners are having in achieving 10 broad business goals that are also statistically related to the SBSI (see Figure 24). In the past year, success has not changed significantly on any goal area, and this may not change until the general economy changes as well. The only goal area where the majority of small businesses are successful is in minimizing costs, while almost half are successful in reducing risks. Performance is mediocre in meeting goals related to increasing value, producing a decent income, maintaining an attractive lifestyle, and growing the numbers for the business. The goal area with the worst performance overall is in growing the business as fast as the owner desires – almost as many are failing in this area (28 percent) as succeeding (32 percent), and success has worsened from a year ago. Another problem area is in building wealth for the owners – 26 percent are failing compared to 32 percent succeeding.

Figure 24

*This goal was not applicable to 17% of SB owners; therefore “Don’t Know/Refused” were removed from the sample for this item.

Another question is whether small business owners are generally satisfied with their occupation (see Figure 25). The majority – 60 percent – are highly satisfied with “being a business owner” compared to only 7 percent who are dissatisfied. The level of satisfaction dropped from 6 months ago when this question was first asked, but the change is not significant. Hard times may be testing the resolve of small business owners, but most are still happy with what they do.

Figure 25

A total of 80 percent of small business owners were the original founders of their concern. The major reason for starting the business was a desire to be one’s own boss (see Figure 26). Only 6 percent started a small business because they were unable to find employment. Other reasons instead were related to a desire to be a business owner, capitalizing on an idea, and a desire to build wealth. Many mentioned an “other” reason for starting up their own business, which includes dissatisfaction in previous job, enjoyment or passion for what they do, being laid off, retired and needed something else to do, and saw an opportunity.

Figure 26