SME owners say stress and long hours worth the effort

A STAGGERING one in six owner/managers are stressed to the point of waking in the middle of the night worrying about their business, according to a new survey.

Findings from the Norwich Union Business Protection survey show that the market downturn and customers defaulting on payments are the main causes of stress for 46% and 30% of SME owners respectively. Around 20% said they were also concerned by rising utility bills.

Trevor Bailey, director of protection at Norwich Union said: “The SME sector is a recognised barometer of the overall health of the UK economy. That a significant number of senior managers are stressed to the point of waking up in a cold sweat is a real concern.

“When business is unpredictable, managers look to negate those risks that are within their control. As a result, we are seeing a marked increase in demand for business protection products.”

And it’s not just concerns over rising costs are that robbing entrepreneurs of their sleep. According to a study carried out for business insurer Hiscox, the UK’s small business entrepreneurs are chalking up more than half-a-billion man hours each year.

The survey showed that on average SME owners are clocking up around 700 more hours a year than their PAYE counterparts.

According to new measurement – the entrepreneurial domestic product (EDP) – launched by Hiscox, a third of SME owners put in more than 50 hours a week while 14% work more than 60 hours.

Yet despite the scale of financial and lifestyle risk running your own business still remains an attractive proposition with around six in 10 (58%) of the country’s small business entrepreneurs citing the desire to be their own boss as a motivating factor.

The report found that nearly a fifth of British small business entrepreneurs (18%) were prompted to start their own business due to redundancy while a sixth of UK entrepreneurs cite a desire to turn their back on the traditional, corporate world as a key factor in their decision to start their own business.

More than 45% of them said it was to seek solace in the suburbs whereas two fifths headed to the countryside to escape the city for good.

Making a good idea a reality was another popular driving force with more than two thirds of respondents (69%) setting up within a year after having a “light-bulb” moment.’

The desire is backed up by the rise in the number of home-grown entrepreneurs in the last four years. More than 212,000 firms were started up last year – a 60% increase on the previous year.

Steve Langan, UK Managing Director at Hiscox, said: “Being your own boss can be a liberating experience, but with freedom comes risk. So many entrepreneurs put their homes, finances, and even personal lives on the line when they first start out.

“Putting a figure such as the EDP against it, it’s clear to see how hard small business owners are working to mitigate and overcome those risks.”

Hiscox’s report also found that British entrepreneurs are the most dedicated in Europe when it comes to making their business a success.

Moreover, their efforts are becoming increasingly vital to the UK’s economic well-being. SME man hours are worth more than £1bn annually.

According to the study, the enthusiasm and committment shown by British entrepreneurs is only equalled by American entrepreneurs, who have a similar working week.