UK's small business owners work half a billion hours a year
Small business entrepreneurs in the UK are chalking up more than half a billion man hours worth £1,046 billion to the UK economy every year, a study conducted for business insurer Hiscox reveals.
Freshly coined by Hiscox as the UK’s ‘EDP’ measure – or Entrepreneurial Domestic Product – this represents every small business owner in the UK clocking up nearly 2,500 hours of blood, sweat and tears every year. Compared to an employee working a standard 37.5 hour week, small business owners work an extra 700 hours a year, or almost 2 hours every day .
The significant value of the UK’s EDP – where these long hours contribute a staggering 37% of UK businesses overall turnover each year - shows the enormous contribution small businesses make to the UK economy.
The study shows that more than a third of small business owners put in over 50 hours a week, with 14% putting in more than 60 hours every week. Despite the long hours, running a business remains an attractive prospect, with 58% of UK small business entrepreneurs citing the desire to be their own boss as a motivating factor.
On the flip-side one of the main worries when contemplating starting their own business is giving up the financial stability of a full-time job – which perhaps explains why they are so ready to put in the long hours.
The research reveals that it’s not just a desire to boost their bank balance that is motivating British entrepreneurs to contribute to the country’s EDP:
- Nearly a fifth of British small business entrepreneurs (18%) were prompted to start their own business due to redundancy
- 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. 45% of them seek solace in the suburbs and two fifths head to the countryside, as they escape the city walls for good.
- 21% have turned their hand to running their own business, as they had a great idea that they wanted to bring to life. More than two thirds set up within a year of having that ‘light-bulb moment.’
- A third set up out of confidence that they can make more money as their own boss.
Commenting on the findings, 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.”
Posted November 13, 2008
