Small businesses in it for the long haul

New research suggests that small business owners are in it for the long haul, with 28% expecting to run their companies for over 25 years - longer than the average marriage in the UK.

The Barclays Local Business survey also shows that, while staff turnover is higher than it has ever been in the wider economy, small businesses bosses are likely to form long-term relationships with their staff. Two thirds of those surveyed still employ their first recruit, and 29% had at least one employee who has worked for them for over ten years.

The survey also revealed that entrepreneurs who value stability in their personal life are more likely to replicate it in the workplace. Respondents who had been in relationships for more than twenty years tended to employ their first recruits for nearly eight years - two and a half years longer than the national average. Their longest standing employees also remained employed for more than nine years - 50% longer that the national average of six and a half years.

Despite growing concern about an economic downturn, confidence among the small business community remains strong, as three quarters (74%) say they are keen to grow their business this year. Of those that felt growth was not an option, a quarter cited the risks currently posed by the economic climate while nearly one in five (19%) said they simply had no interest in making more money – suggesting it is a love of their business rather than their bank statement which gets entrepreneurs out of bed in the morning!

More survey findings

• The average length of employment for an organisation’s first recruit was 5.3 years
• THe average length of employment was highest in Scotland at just under six years
• Retention levels for the longest standing employee were highest in the South East at just under nine years. This figure drops to five years in London
• Entrepreneurs in the East and West Midlands tend to employ their first recruit for longer – approximately six years. The average length of employment for a first recruit was lowest in London at around four years
• The average length of employment tended to be higher when the owner was male rather than female