A recent study published in July by the British Journal of Politics from Stanford University and King’s College London uncovered findings that many might find familiar if they have any insight into American small businesses.
The authors wrote, “Special surveys from around the world, campaign finance records, voter files, and the first special bespoke study of SME owners – leveraging diverse sources of data – find consistent evidence that SME owners are more likely to identify with right-wing parties and vote. The experience of being an owner of a small business leads people to adopt conservative views on government regulations.”
Surprised? Not really. After spending over 20 years writing about small business owners while managing my own, these insights feel pretty expected.
I’ve engaged with more than 50 trade and industry conferences each year, addressing public policy, economic, and technological issues. The audience size varies from 200 to over 5,000. And, who are they? Mostly business owners, many of whom are middle-aged white men—a topic for another day.
These are smart individuals who, often quietly, have run their businesses for decades, impacting families and communities, sometimes in places you wouldn’t recognize. While I generally steer clear of political discussions in my presentations, it’s not hard to read the room. The majority tend to lean Republican, with many having voted for Donald Trump, as confirmed by interactions with meeting leaders and attendees.
I also work with startups. One particular owner stands out; she was a math teacher for 15 years before launching a nonprofit that offers tutoring to seniors. While she’s typically a lifelong Democrat, I’ve noticed her resolve starting to wane.
Her stress and frustration have visibly intensified under the pressure of running her business. She once told me, “I spend more time negotiating insurance and dealing with lawyers and staff than I ever did teaching math.”
Some might wonder if Republicans truly outperform Democrats when it comes to economic management. Historical data suggests that the economy often does better under a Democratic president, yet certain Republican policies—take tariffs, for example—have left many business owners anxious. Under Biden, there’s been a push to support small businesses and minority startups, so why the discontent? What’s driving these feelings?
Several factors contribute to this sentiment.
One is risk. Business owners inherently take risks. There’s no steady salary, and you can’t simply switch off when you leave the office. You’re always on, responsible for decisions that impact employees, customers, suppliers, and more. Naturally, you want a political leader who helps reduce those risks.
Government regulations can heighten the risk of unintended violations, complicating operations. Policies that strengthen worker protections can create additional worries about talent retention and costs. Therefore, business owners may gravitate toward politicians who seem less likely to increase these risks.
Control is another significant factor. Many people leave their jobs because they seek more autonomy over their lives and passions. Running a business can demand more time than expected, yet it offers a freedom from the constraints of a traditional job—like an unreasonable boss. Business owners value the control they have over their finances and decisions. Any perceived threat to that control can be a deal-breaker.
Fear also plays a big role in pushing business owners to the right. As mentioned, the risks are real. Many long-time clients express concerns about current economic conditions; they fear that order backlogs might not recover or that new orders won’t come through. They worry about rising interest rates, inflation, and policies affecting their bottom line. Feelings of government overreach—like increased regulations—add to their anxiety about profit margins.
Business owners tend to be cautious and sometimes mistrustful, despite their optimistic outlook. My nonprofit math tutor friend has seen too many lies from employees, service providers, and even customers who don’t fulfill their commitments. When dishonesty becomes a pattern, it can lead to skepticism about everyone involved in the business.
Like many, business owners recognize that politicians can be disingenuous. Promises of tax cuts and economic growth often feel unfulfilled. Because of this, they may prefer to hear less from government leaders whom they perceive as likely to break those promises.
Ultimately, perception is crucial in business. Right-leaning politicians, despite their flaws, often exude a sense of professionalism in the business realm. Left-leaning individuals might come across as more labor-focused. Generally, business owners gravitate toward those who seem to mitigate risk, ease fears, and enhance their decision-making control. To earn the support of the over 30 million small business owners in the U.S., these concerns must be genuinely addressed.
