Why celebrating wins can be a big deal for small businesses

Running a small business is no small feat. Between chasing invoices, managing teams, and navigating macro-economic curveballs, it’s easy to forget to pause and celebrate the wins, big or small. But our latest research reveals that recognising milestones isn’t just having a feel-good moment, it’s good for business.

According to our global study, over three quarters (84%) of small business owners say celebrating achievements boosts employee morale, while a majority (82%) say it improves wellbeing, and over two thirds (71%) believe it positively impacts business performance. That’s a compelling case for a celebration — or at the very least, posting a celebratory emoji.

Yet, despite these clear benefits, one in five small businesses don’t celebrate at all. Why? Of those that don’t celebrate, some say they’ve never thought about it (53%), others worry about costs (38%), or fear setting a precedent they can’t maintain (21%).

For many, getting to a milestone isn’t always smooth sailing either. Nearly half of owners feel motivated and excited in the lead-up. But many also report anxiety, uncertainty, and stress until the goal is hit, when those unsettling emotions flip to pride and happiness, showing that the journey is just as important as the destination.

In a world where small businesses are the backbone of the economy, recognising progress isn’t just a nice-to-have, it’s essential. Celebrations fuel motivation and remind teams why they do what they do. Celebrating also significantly builds resilience by fostering self-efficacy—that “you got this!” feeling. This confidence encourages more ambitious goal-setting and leverages momentum. This might explain why businesses who celebrate milestones experience higher revenue increases, on average, than those who don’t.

Celebrating generates positive emotions that, as per Fredrickson’s “Broaden and Build Theory,” enhance wellbeing by broadening perspectives and encouraging the pursuit of new successes and relationships. It also offers vital psychological detachment from the consuming nature of small business ownership. This separation allows for mental and emotional rejuvenation, often leading to new insights and perspectives.

It turns out that those moments when an owner feels they ‘made it’ are deeply personal. From making a first sale, to relocating to a new office, to upgrading the company coffee machine, small business owners define success in their own terms.

One founders made-it moment was when someone wanted to work for her company, MumPod. It might seem small to outsiders, but to Ros, it was monumental. Seabin’s made-it moment was successfully crowd-funding for a capital raise – a feat which the founders’ friends ensured he made time to celebrate. Seeing SuvaNova’s work live on TV at the Super Bowl constituted another made-it moment, an undeniable cause for celebration. 

While the Xero research found that small business owners spend an average of US$2,794 on celebrations, meaningful recognition doesn’t need a big budget. Scott Goodfriend who founded Ultimate Food Tours in New York, takes time to recognise his progress by sitting quietly with a coffee.

The study shows that it doesn’t always have to be all work and no fun. The path to success is rarely linear, and celebrating the made-it moments along that journey is just as vital as reaching the final destination.

The global research report includes unique insights by country for Australia, New Zealand, Singapore, South Africa, United Kingdom, Canada and the United States.

What comes to mind when you think of a moment you felt you’d made it in your business? Share yours and tag @Xero on LinkedIn, Instagram or Facebook, and @XeroAccounting on TikTok.