Why Purpose-Driven Businesses Survive Economic Downturns

No two entrepreneurs are alike and each and every person who starts a new business does so with a different end goal in mind. While the exact reasons may differ, these can be boiled down until there are two prevailing themes left: making money and enriching people’s lives.

When the economy is stable and consumers feel as though they have ample access to money, average products can sell without much hassle. In times of economic uncertainty, like the recent recession, those average products have little chance of survival. So, what is it about a purpose-driven business that keeps customers coming back even though they feel more apprehensive about money than ever?

  • Customers like businesses that are there to help them. When, where and how consumers spend their money matters. They won’t spend their money on a product that doesn’t matter. If a company is only in the business of making profits, consumers are much more likely to turn to an alternate company with a purpose-driven attitude that is reflected in its products.

Customer loyalty is only one part of the equation for surviving difficult financial times. Business owners play a major role in determining whether a startup will weather the downturn or if it will ultimately succumb to the times. Here’s how:

  • Purpose-driven entrepreneurs are more determined to keep going. Admittedly, money is a decent motivator for most people, but it lacks the essential driving force behind a purpose. Money can only buy so much, whereas purpose-filled entrepreneurs find fulfillment and joy in tending to and growing their businesses. The profits are nice, of course, but the real meaning is in the work and the products. Sagging profit margins and a rough and tumble economy are not enough to bring these types of business owners to their knees.

Discovering purpose has never been more important for entrepreneurs. In order to succeed where others fail, creating a business built and supported by a clear and driven purpose is one of the first and most important steps.

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