Britain’s smallest firms have no plans to grow up

Britain’s micro businesses are happy as they are, according to research from MORE TH>N Business. The majority are run by alterpreneurs – lifestyle-focused business people – who are more interested in a quality of life than growth.

The small business insurer has published the Health, Wealth & Happiness Report, which assesses the factors motivating the Britain’s micro business owner-managers – a sector often seen as a hotbed of entrepreneurial endeavour.

The report, available from www.alterpreneur.co.uk, identifies the rise of a new class of micro business owner, the alterpreneurs, who are taking over from the finance and career orientated entrepreneurs.

According to the site, the majority of people starting businesses should be classed as alterpreneurs, rather than entrepreneurs. Less than a quarter (23%) set up their firms in order to make lots of money.

· 60% went into business in order to get more control over their lives

· 54% said they went into business in order to be ‘happier’

· Just 3% said they wanted to emulate high profile entrepreneurs like Richard Branson

These ‘alterpreneurs’ see quitting corporate life and starting their own firms as a lifestyle, rather than career choice. They want an alternative to the nine-to-five of a traditional job, and the ‘one size fits all’ lifestyle that goes with it. They have set up on their own in an attempt to take back (or retain) control over their lives. They don’t live to work - they work to live.

The way they run their businesses, and their ambitions for the future reflect this.

· 85% say quality of life is more important than money when it comes to business planning

· 70% say they are happy and comfortable with their business just as it is

· 56% never want to employ more than 10 staff

Rachel Cotton, Manager of MORE TH>N Business, said: “This research confirms something we already suspected, that the majority of people running Britain’s smallest businesses are not interested in significant growth. Along with feedback from our own customers, this research leaves us in no doubt that we are seeing a reaction against the steadily increasing pace of modern life. Alterpreneurs are motivated by lifestyle rather than career or financial ambitions, which is reflected in a steadier, more relaxed approach to business.”

Stephen Alambritis, Head of Parliamentary Affairs at the Federation of Small Businesses (FSB), commented: “Working for yourself can be a great lifestyle choice. Despite the hard work and long hours involved, very few people who have made the leap would consider returning to the nine-to-five world again."