LONDON, June 25, 2019 /PRNewswire/ -- New SME research
released today by iwoca, one of Europe's largest business lenders, reveals
that the top reasons for starting a business were to have the
opportunity to "work for myself" (69 percent), "love what I do" (31
percent) and "spend more time with family" (23 percent) -
representing 79 percent of small businesses in the study. A
significant one in ten started their businesses because they didn't
like working with other people.
As part of this new UK business owner survey, iwoca also reveals
the daily challenges SME owners face, such as dealing with banks,
having cash-flow issues and deciding who to turn to for extra
finance.
According to UK SME owners, the most popular reasons for
starting a business were:
- Work for myself (according to 69 percent)
- So that I can love what I do (31 percent)
- Spend more time with family (23 percent)
- To be a successful entrepreneur (20 percent)
- Saw a gap in the market (17 percent)
- Don't like being told what to do (17 percent)
- Don't like working with others (10 percent)
- I can do a better job than my boss (8 percent)
- To be rich (8 percent)
- To make my family proud (7 percent)
The list reveals that almost one in five SME owners started
their business because they "don't like being told what to do",
with 10 percent of respondents claiming a dislike of working with
others was their main motivation – the equivalent of over half a
million SME owners. The notion of being more independent and
improving personal wealth also featured, with eight percent both
claiming to be able to do a "better job than my boss," and hoping
that their new business would make them "rich".
Outside of the top ten, six percent simply "weren't sure what
else they could do," with four percent of respondents saying they
started a business because they "got fired". Only three percent of
businesses started their venture to "create the next big thing" or
because they felt they were "unemployable." One business owner
said, "It's better to be the head of a chicken than the tail of an
ox."
The research also looks to uncover how fast and seamless access
to finance actually matters to Britain's 5.7 million SMEs. When asked what
some of the largest obstacles to running a business were,
"uncertainty around Brexi,t" only concerned 15 percent of business
owners, whereas "lack of finance" (21 percent), "late invoice
payments" (19 percent) and "red tape" (18 percent) were all deemed
larger obstacles.
Although only 16 percent of business owners said they found it
difficult dealing with the banks, almost six in ten (58 percent)
reported that the time it would take to access finance was
important (iwoca has processed and funded it's fastest loan in
three minutes and twenty six seconds). It also seems that
"ghosting" isn't just a term associated with the dating world.
Almost one in five business owners (19 percent) reported that the
worst thing about having cash-flow problems was being "ghosted" by
customers who didn't pay them on time. However, the "uncertainty"
or "stress" was the worst thing about cash-flow problems in their
business, with almost four in ten (37 percent) reporting it as an
issue.
Seema Desai, Chief Operating
Officer at iwoca said: "More and more people are becoming
aware that deriving a clear sense of purpose from your work,
whether you're a business owner or an employee, is a hugely
important motivator.
"Managing cash-flow is critical to many businesses, and this is
something we're solving with seamless and simpler access to
finance. We are here to fill the gap left by the banks and give
businesses the opportunity to move in the right direction, whatever
the motivation."
About iwoca
iwoca is unlocking economic growth by expanding the financial
possibilities available to small business owners. No more
convoluted forms, long waits and unfairly rigid criteria. Using our
award-winning technology we offer loans of up to £200,000 through
partner integrations and our Lending API. Since launching in 2012,
we helped over 25,000 European businesses and have raised £350
million in equity and debt finance.
Contact details
Mark
Di-Toro
+44 (0) 795-797-0976
m.di-toro@iwoca.co.uk