Small business owner balancing financial and personal values.

Beyond the Balance Sheet: How Personal Values Drive Small Business Success

Jordan Keane in Business & Economy June 2025 • 4 min read.

"Uncover the surprising link between a small business owner's personal values and the overall performance of their company."

For many, the idea of a successful business boils down to cold, hard numbers: revenue, profit margins, and market share. However, what if the secret ingredient to a thriving small business wasn't just about financial performance, but also about the personal values and priorities of its owner? This concept challenges the traditional view, suggesting that a leader's motivations and ethical compass are just as crucial as any business strategy.

Traditional metrics often fail to capture the full picture of a small business's achievements. Can a simple growth rate or a balance sheet truly reflect the dedication to local community, environmental stewardship, or employee well-being? This article dives into the deeper, often overlooked aspects of small business success, revealing how personal values translate into tangible business outcomes.

Based on research into Quebec-based small and medium-sized enterprises (SMEs), this article sheds light on how a business owner’s unique ‘entrepreneurial profile’—shaped by their motivations, experiences, and values—directly influences their vision of success and, ultimately, their company’s performance. By understanding these connections, entrepreneurs can gain a more holistic perspective on their goals, and policymakers can craft more effective support strategies.

What Truly Defines Performance? It's More Than Just Profit

Small business owner balancing financial and personal values.

Traditionally, business performance has been measured through financial metrics, focusing on profitability and growth. These financials are great but don't tell the whole story. The reality is the definition of success can vary widely. For one entrepreneur, success might mean maximizing profits and rapidly expanding the business, while for another, it could be about ensuring a stable income for their family and contributing to their local community.

This difference in priorities highlights the fact that small business owners aren't simply miniature versions of corporate executives. The concept of 'satisficing' comes into play here, where owners prioritize achieving a satisfactory level of profit while also fulfilling other personal or social goals, rather than relentlessly pursuing maximum financial gain.

Personal Values: Quality of life, work-life balance, personal autonomy.
Social Responsibility: Contributing to the local community, ethical practices, employee well-being.
Environmental Stewardship: Sustainable practices, minimizing environmental impact.
Financial Stability: Consistent profitability, managing risks effectively.

Understanding the 'entrepreneurial profile' of a small business owner is key to understanding their definition of performance. This profile encompasses their motivations for starting the business, their personal values, their skills and experience, and their strategic approach to growth. Research shows that these elements significantly impact how an owner defines success and how they manage their business.

Redefining Success: A New Perspective for Entrepreneurs

The research clearly demonstrates that small business success is a multifaceted concept, deeply intertwined with the personal values and priorities of the owner. It's time to move beyond traditional metrics and embrace a more holistic view of performance that recognizes the importance of social, ethical, and personal considerations. By aligning your business goals with your core values, you can create a venture that is both profitable and personally fulfilling. This approach not only benefits the entrepreneur but also contributes to a more sustainable and equitable economy.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.3917/entre.101.0033, Alternate LINK

Title: La Conception De La Performance : Quels Liens Avec Le Profil Entrepreneurial Des Propriétaires Dirigeants De Pme ?

Journal: Revue de l’Entrepreneuriat

Publisher: CAIRN

Authors: Josée St-Pierre, Louise Cadieux

Published: 2012-03-01

Everything You Need To Know

Why are traditional financial metrics sometimes inadequate for measuring the success of a small business?

The traditional metrics like revenue, profit margins, and market share often fail to fully represent the achievements of small businesses. These metrics do not account for aspects like dedication to the local community, environmental stewardship, or employee well-being. Focusing solely on financial performance overlooks the personal values and priorities of the business owner, which are crucial for understanding the true scope of a small business's success.

What does the ‘entrepreneurial profile’ of a small business owner include, and how does it affect their business?

An ‘entrepreneurial profile’ encompasses a small business owner's motivations for starting the business, their personal values, their skills and experience, and their strategic approach to growth. This profile significantly impacts how an owner defines success and how they manage their business. It shapes their vision and, ultimately, influences the company’s performance. By understanding these connections, entrepreneurs can gain a more holistic perspective on their goals.

What does the term 'satisficing' mean in the context of small business, and how does it relate to an owner's personal values?

The concept of 'satisficing' in small business refers to owners prioritizing a satisfactory level of profit while also fulfilling personal or social goals, rather than relentlessly pursuing maximum financial gain. For example, an owner may choose to provide better benefits to employees or source materials locally, even if it slightly reduces profit margins. This reflects a balance between financial success and personal values, such as quality of life, work-life balance, personal autonomy, and social responsibility.

How does aligning business goals with personal values impact the overall success and sustainability of a small business?

Aligning business goals with personal values such as quality of life, work-life balance, personal autonomy, social responsibility (contributing to the local community, ethical practices, employee well-being), and environmental stewardship (sustainable practices, minimizing environmental impact) leads to a venture that is both profitable and personally fulfilling. This holistic approach not only benefits the entrepreneur by creating a more sustainable and equitable economy but also fosters stronger connections with the community and greater employee loyalty. This creates a virtuous cycle where values drive performance and performance reinforces values.

In what ways does redefining success beyond financial metrics contribute to a more sustainable and equitable economy?

By embracing a definition of success that extends beyond financial metrics and incorporates values, small business owners can create a more sustainable and equitable economy. When business owners prioritize social and ethical considerations, they are more likely to engage in practices that benefit their communities, employees, and the environment. These practices contribute to a more balanced and responsible economic ecosystem, fostering long-term prosperity for all stakeholders. This can also result in improved brand reputation, increased customer loyalty, and a more engaged workforce, ultimately driving financial success as well.