Slowly extinguishing the tension between economic and social impact: Leveraging paradox perspective in managerial mindsets and uncovering interventional areas

Managers increasingly face pressure to balance the economic and social aspects of running a business, and the tension between these competing demands presents a significant challenge. This study explores how managers of small businesses interpret and respond to such tensions through the lens of paradox theory. Through 23 structured interviews with managers of small businesses, the study identified three distinct managerial mindsets: survival, reserved, and paradoxical. These mindsets differ in their proactive or reactive approach to tension, the depth of the engagement, emphasis on short-term versus long-term outcomes, logic of engagement, and beliefs regarding achieving social impact. Many managers remain constrained by limited resources, contextual barriers, or deeply held assumptions, highlighting the need for a more nuanced understanding of mindset cultivation. This study surfaced the need for levers for mindset development to support managers in navigating tension by leveraging motivation, building capability, and seizing opportunity. By introducing the intermediate “reserved” mindset and clarifying levers for mindset development, this study shows how small business managers slowly extinguish tensions between the economic and social aspects of running a business.