April 2005 - There’s No Rest For The Productive
Productivity is directly linked to the long hours and industriousness of the country’s entrepreneurs, found the Bank of Scotland Business Banking survey, conducted by ORB.
Thursday, 28 April 2005
Small businesses contribute around £500 billion to the UK economy every year, over half of the country’s GDP - productivity which is directly linked to the long-hours and industriousness of the county’s entrepreneurs according to new research.
The Bank of Scotland Business Banking survey reveals a strong correlation between business growth and the long hours invested by business owner-managers with over half (54%) of businesses achieving over 10% growth in the last three years headed by an owner-manager working over nine hours a day. In stark contrast, almost three-quarters (71%) of businesses achieving no growth were headed by an owner-manager working less than nine hours.
The survey also highlights the hard work and pressures involved with running a small businesses - typically putting in long hours at work, spending minimal time with their families and sacrificing weekends, vacations and public holidays to the needs of the business.
For two-fifths of business owners and managers the typical working day is over nine hours, while a third would even work when on vacation. What’s more, nearly 80% continue to work when ill. Even Christmas Day is not sacrosanct or full of cheer - with almost a fifth admitting that they either sometimes or always work on this bank holiday.
Owners and managers in Manchester and the Midlands put in some of the longest hours in the UK with 44% working over nine hours each day. However, a hardy one in twenty (5%) of Scots business owner-managers work over 15 hours a day.
The research findings suggest that women at the helm of SMEs are better at managing their work-life balance – with just 20% working more than a nine hour day compared with 46% of men. Women also have different priorities, with 40% stating that they never put their business before the needs of their family compared to just 26% of men.
Kevin Gillett, Head of Bank of Scotland Business Banking, commented: “Historically viewed as a nation of shopkeepers, SMEs continue to be the backbone of our economic strength in the 21st century.
“The UK is Europe’s most entrepreneurial major economy, with a business start-up rate that is higher than Germany, Italy and France. The proportion of people looking to start their own ventures has also increased significantly in recent years. In 2002, 7.8% of the population expected to start a business in the next three years, but by 2004 this had increased to 9.5%.
“However, it’s clear that running a small business is no mean feat. Almost 80% will fail in their first five years, and only one in 25 survive beyond 10 years. So it’s no surprise that more than half of the business owners questioned in our survey admitted to suffering from serious work related stress at some point during their working life.
“An increased awareness and implementation of flexible working practices could ease the burden without damaging the business. With women making up 27% of the UK’s self-employed, female entrepreneurs’ stronger emphasis on work-life balance could also help to redress this issue.
“That said, however, it appears there’s no easy work-life balance formula as the results also indicate a correlation between the hours put into the business and the growth experienced during the past three years. Businesses experiencing the highest levels of growth also have a higher percentage of owners/managers working longer hours. It seems there’s no rest for the productive.”
Editors’ Notes:
1. Statistics from Federation of Small Businesses at www.fsb.org.uk
2. The Bank of Scotland Business Banking survey was conducted among 520 companies with an annual turnover of up to £1 million. Telephone interviews were conducted by ORB (The Opinion Research Business) in February and March 2005.
3. There are now 46 women entrepreneurs for every 100 male entrepreneurs. Statistics from the Global Entrepreneurship Monitor (GEM) 2004.
For further information, journalists should contact:
Barry Gardner Bank of Scotland
Tel: 0131 243 7194 / 07900 227 292
e-mail: barry_gardner@bankofscotland.co.uk
For more information from ORB please contact Allan Hyde on 0207 611 5272 or email allanh@opinion.co.uk
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Click on the link below to view the main findings of the survey:
No rest for the productive.ppt
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