What Does A Survey Of Small Businesses Tells Us

One of the most cited reasons for people to launch their own business is to be able to be their own boss. However, a recent survey conducted by the Bank of America reveals some interesting statistics regarding the stress, financial insecurities and overall well being of a small business owner.

Lifestyle Changes

One of the perks with running your own small business is the ability to craft your own routine. You no longer need to wake up at 6 every morning nor do you need to catch the 8 AM subway train everyday. However, the BOA survey reveals that a majority of owners still do not have a routine that aspiring entrepreneurs dream of. More than 50% of the respondents revealed that they are not able to catch a healthy 7-8 hours of sleep every night. Further, less than 30% of the respondents were noted to be able to afford more healthy food while only around 21% of the surveyed businessmen confided to be able to spend more time with their friends and family. Close to three-fourths of the business owners revealed to be working more than 40 hours a week - the amount of time they might be working at a regular 9-5 job.

Financial Sustainability

Sustaining the finances over the long term is one of the primary concerns for any small business owner. Unlike large corporates, small businesses cannot afford to run at a loss for extended periods of time. The BOA report reveals that at zero income level, the average small business owner in North America can afford to sustain their business for not more than 5 months before requiring external help. Despite the crunch financial viability, most businesses still have not adopted to cost-saving measures. Let us take the example of signing contracts. A lot of large sized corporates today have replaced traditional paper documents with digital alternatives that are signed electronically. The cost saving through this measure has been estimated to be around 75% according to a 2009 report by Forrester Research. Despite the obvious savings that businesses may expect through adoption of such technology, an overwhelming majority of small businesses are still slow to adoption. Popular solutions in the market like eSign are available for as low as $15 per month.

Employee Morale

The work culture in a small business setup is expected to be a lot more intimate than a corporate work place. Consequently, employees at such businesses are expected to be more happier than their counterparts at large enterprises. However, the BOA report shows the small businesses are not treating their employees better than corporates. Less than half of the businesses offered flexible working hours to their workers. Only one-third of these employees enjoyed health benefits while an even lower percentage of workers had other amenities at their workplace like snacks, free lunches, etc. Interestingly, less than 25% of the small business owners allowed the use of social media at work and only 12% of such work places had child care facilities. Sadly, the report notes that just around 22% of the owners regarded these perks a priority for business. Given that these small perks contribute to the overall happiness at the work place, is it any wonder then that more employees continue to be drawn towards the corporates for work?

The revelations above may run counter to the premise of this blog that small business is fun. However what needs to be noted here is that the report is a snapshot of how small business has traditionally been run in the country. As aspiring business owners ourselves, the onus is upon us to change this setup and make work more fun - both for ourselves as well as the employees who work for us. This is the only way to justify our desire to be our own boss.