Materialist, Innovator - what business type are you?

The Sage Business Heartbeat Survey, a new, ongoing piece of research into the ups and downs of business, has identified five key types of business, from the family firm to the thrusting innovator – and reveals the key characteristics of each type.

The good news is that, overall, most UK businesses report an upturn in revenues and profits, whatever their reasons for being in business for the past 12 months. However, there are some startling differences, based on the motivation of the companies’ leader – and it appears there’s a correlation between that motivation and how positively they view the future.

The Sage Business Heartbeat Profiles:

Materialists:

Material things matter for these people, who understand how to make the best out of any opportunity. One in seven UK businesses (14%) is Materialist. At its simplest, they are in it for the money. The attitude pays dividends: two-thirds (67%) report more profits this year than last, and even more expect greater things in future.

Innovators:

These dynamos of UK creativity are the hardest workers and comprise 23% of UK companies. After spotting gaps in the market, they are quick to fill them with their own innovative products and services. The interest in innovation is reflected in their commitment to research and development, and in staff training. They intend to increase this kind of investment more than any other profile.

Developers:

The largest group, comprising a third of UK businesses (34%). They have moved into a management or ownership position through progression in their company, not through any particular planning, so it just sort of “happened”. This lack of absolute focus produces mixed results: they are neither the most bullish nor the most bearish about the future. However, they are least likely to actively encourage their children to go into business (43%)

Lifestylers:

These people started their own businesses in order to take control of their lives. Being their own boss means they control their own destiny and can manage their own hours, but they don’t really manage the perfect work/life balance (inheritors work fewer hours). But the dream is worth investing in – they are most likely to use their own money to fund the business (83%). Like Innovators, about a quarter of UK businesses (23%) are Lifestylers.

Inheritors:

This gloomy group had their business handed down to them by the generation above - and aren’t necessarily happy about it. Just seven per cent of companies are Inheritors and, if they had anything to do with it, the line dies with them. They are least likely to go into business ever again (44% say never again).

The Sage Heartbeat survey highlights a number of issues businesses face, but does not set out to understand why entrepreneurs would not want to set up again. Nevertheless, Sage’s Business Heartbeat Survey does provide a number of reasons why British businesses may not want to do it all again despite the fact that in general they are upbeat about next year’s financial performance (71% expect turnover to increase next year).