Entrepreneurs struggle to cope with realities of running a business

Key findings:

38 per cent of entrepreneurs find it difficult to achieve work-life balance.

Key set of challenges for SME owner-managers: Finding customers, time management and determination to overcome setbacks & feelings of isolation.

The general public now holds entrepreneurs in higher regard than 10 years ago.

Hard work, good staff, embracing technology & a strong support network are the most important factors in running a successful business.

42 per cent of respondents feel that Reality TV shows help to increase status of entrepreneurs but fail to inspire people to start businesses.

Women tend to rely more on their support networks whereas men are more likely to put success down to previous experience and luck.

A report released today by T-Mobile and Kingston University reveals huge disparities between the perceptions and realities of starting and running a small business. Based on a YouGov survey of over 700 UK SME owner-managers, the report, Age of The Entrepreneur, gives an insight into the reality of starting and running a business in contemporary Britain.

Whilst almost half (46 per cent) of people start a business in order to achieve an improved work/life balance, the reality is that over a third (38 per cent) report that their business impacts upon their relationships with family and friends. A further 36 per cent struggle to manage their time effectively and balance demands on their time.

The report also questions the portrayal of small businesses as the cutting edge of the UK economy. Many SME owner-managers were found to be ësteady stateí entrepreneurs, not actively looking to improve their businesses (33 per cent) and more concerned with making only a ëcomfortableí living for themselves and their families (56 per cent). Only four per cent of SME owner-managers admitted to starting their business with the aim of ëmaking their first millioní.

Professor Blackburn, Director of Research at the Small Business Research Centre at Kingston University, said: ìMoney is not the motivating factor that you would expect based on programmes such as Dragonsí Den and Tycoon. People enter business to take charge of their own destiny and to improve their work-life balance ñ although this report highlights that SME ownership has more of a negative impact on the latter.î

The report also reveals that owner-managers believe that their status within the UK economy has significantly improved over recent years. 44 per cent of SME owner-managers felt that entrepreneurs are regarded with more admiration by the general public that ten years ago, compared with just 12 per cent that felt that that their standing had fallen. A significant number of respondents (42 per cent) felt that SME owners are now held in higher regard than they were 10 years ago.

Derek Williamson, Head of Market Development at T-Mobile UK, said: ìThis report shows that society is now more supportive of small businesses and those people that are turning their backs on conventional employment to start their own business. With greater opportunities for entrepreneurship, people are realising their dreams of controlling their own destiny. However, while traditional barriers to small businesses such as access to finance and burdensome red tape seem to have eased (less than a fifth of respondents thought these issues were the most difficult challenge faced), a new set of challenges has emerged, notably the difficulty of achieving a work-life balance. SME owner-managers are struggling to cope with the time demands that running a competitive business places upon them.î

The Age of The Entrepreneur report compares the expectations of SME owner-managers prior to starting out in business with the reality of running their own business. The report also examines the factors that contribute to business success, as seen by small business leaders. Having an original product, working hard and having a strong network from friends, family, suppliers & other businesses were cited as the most important factors. Using technology for competitive advantage was also seen by 74 per cent as being important as a means to improve productivity. Women placed more emphasis on the support of family & friends and the importance of market research as being crucial to success, whereas men were more inclined to put success down to quality of staff, use of technology, ëluckí and having previous experience in running a business.