Small businesses experience growing pains
Growing a small business should carry a health warning for ambitious entrepreneurs according to the latest Office World Quarterly Small Business Survey.
While a positive effect is reported by 32 per cent of business owners employing no staff, health starts to suffer as soon as the desire to grow the business kicks in. The figures show a progressively detrimental effect on health as the number of employees increases.
Thirty-six per cent of small business owners with up to five employees report a negative effect on their health. This leaps to 46 per cent for those employing up to ten people. For small firms with more than ten staff the proportion of owners experiencing a negative health impact rises to over 50 per cent.
Across the entire sample of over 1,000 small business owners, over 40 per cent are negative about the effects on their health while a quarter say running a small business is good for health. Around a third saw no impact either way according to the survey, commissioned by superstore retailer Office World and carried out by the Small Business Research Centre at Kingston University.
Holidays
A further pointer to the pressure on small business owners is that, as others prepare to jet away on a summer holiday, 66 per cent of people running small firms will take less than the statutory 20 days leave per year for corporate employees. Worst hit in this regard are those in agriculture where only 11 per cent reach the norm, retail and distribution where 77 per cent take fewer days and computing and IT where 73 per cent take fewer than 20 days.
However, running a small business can have some advantages when it comes to balancing work with family. Forty-four per cent are satisfied with their work-life balance compared with 35 per cent who are dissatisfied. A further 20 per cent weren’t sure.
Andy Etherington, chief executive officer at Office World highlighted the difference between the 'self-employed worker' and 'the business builders'.
He said: "It has always been tough to grow a business and these figures bear out the sheer hard work that’s needed to achieve success and the wealth that goes with it.
"What’s interesting is the beneficial effect on health amongst the self employed. This, of course is a big and fast growing sector with technology driving up the numbers of teleworkers, homeworkers and the freelance community as a whole. There is clearly an element of wellbeing present in the increased ability of the self employed to control their work-life balance."
Political
The survey also indicated political support among the small business community for the Opposition parties although it was slowing down. Although down two points on last time, increased small business support for the Tories is holding at 36 per cent in an election tomorrow with 16 per cent choosing Labour and 14 per cent the Lib Dems.
Advice
The survey asked business owners who they turned to for external advice. While many had used accountants (76 per cent), other business contacts (51 per cent) and banks (44 per cent) during the previous year, there was clearly little enthusiasm when asked to choose a ‘most used source’. Only 22 per cent chose their accountant, 18 per cent chose other business contacts, just three per cent chose their bank while 36 per cent had no preference at all.
Andy Etherington said: "This is worrying. We all need good advice but it seems that small businesses are not seeking advice by choice. Awareness of the vast array of support services in the professional, commercial and government sponsored sectors does exist. The survey shows that all these sources of support have been used to some extent during the year. However, when asked which was the ‘most used source’ only accountants and business contacts achieved more than a six per cent rating."
The survey showed that trade associations mustered four per cent support, banks a mere three per cent while bodies like Business Link won two per cent, as most used source with Chambers of Commerce, the DTI and Enterprise Agency all polling less than one per cent.