Small business owners say they are in it for the long haul - research

New research shows that most small business owners prefer being their own boss, with almost seven in 10 (69 per cent) owners saying it is preferable to working for someone else, with a similar number (71 per cent) saying they intend to continue running their own businesses for the long-term.

Running a business has not been without its challenges, particularly when it comes to managing finances, with 90 per cent of business owners polled saying they have experienced at least one particularly difficult period in the past five years, which meant they seriously considered giving up their businesses altogether.

Cashflow issues and rising energy costs (both 27 per cent) were cited as the top factors contributing to the challenges their businesses faced.

But to deal with financial pressures, owners say they adapted and took practical steps including reviewing their running costs (19 per cent), diversifying their offering by introducing new products, services or sources of revenue (17 per cent) and reducing their opening hours (14 per cent).

A fifth (18 per cent) used their personal savings to support their business.

Personal fulfilment and a strong sense of purpose also help to keep business owners motivated.

In research carried out by Smart Energy GB, respondents cited pride in what they had built (69 per cent), with flexibility and control over their time (29 per cent) long-standing customer relationships (26 per cent) and doing work they love (25 per cent) given as some of the reasons for remaining self-employed.

Victoria Bacon, a director at Smart Energy GB, said: “Small business owners have shown how resilient, resourceful and committed they are.

“This research highlights the pressures they face, the pride they take in what they’ve built and the practical steps they are taking to keep their businesses moving forward.

“Keeping a close eye on running costs can make a real difference. The data provided by a smart meter can help business owners understand their energy use and identify where they may be able to find ways to reduce their energy bills. Arranging a smart meter installation is also quick and easy to do.”

Looking ahead, over four in five (82 per cent) of business owners say they are optimistic about the future of their business, with just under half (46 per cent) planning to moderately grow their businesses over the next 12 months.

At the same time, they remain vigilant around their business’s finances and running costs, closely monitoring customer demand and sales (31 per cent), with nine in 10 saying managing their businesses’ energy use and costs will be important to their business’s financial resilience over the next year.

Creating jobs and supporting employees (22 per cent) was identified as one of the greatest rewards of running a small business, with a fifth (20 per cent) citing building, or continuing, a family legacy.