Call Us0333 0146 683

1 in 5 UK business owners are foregoing pay to keep their business running

alt tag.
Anna Delves

Anna Delves

29 March 2017

Running a business can have its ups and downs, but new research has found that recently, there have been more downs than ups for many UK business owners.

Nearly a fifth have reported skipping payday in order to keep their business afloat for another month.

Most businesses are self-financing

Despite the dire straits facing nearly 20 per cent of small businesses, the majority are entirely self sufficient.

57 per cent of those surveyed say they don’t rely on anyone or anything for financial support while, at the opposite end of the spectrum, 19 per cent said they’re relying heavily on personal savings.

SMEs are ambivalent about the year ahead

With different priorities and financial circumstances, it makes sense that some business owners are confident about the year ahead, while others are a little more unsure.

Over a third said that they’re expecting more growth in 2017 than last year, but a quarter were more pessimistic, expecting 2017 to be a worse year for growth than the one before.

Is debt to blame?

For those who are struggling to make ends meet and don’t have high hopes for the year ahead, business debt could be the root of the problem.

Over 80% of small businesses are owed money, so even those who are self-sufficient could be coming up short.

The good news is that last month, the government announced they would be hiring a new small business commissioner to help solve the debt problem. Coupled with the Chancellor’s withdrawal of the proposed increase in Class 4 NICs, maybe more small business owners can be cautiously optimistic about the year ahead.

How do you feel about the year ahead? Let us know in the comments.

Ready to set up your cover?

As one of the UK's biggest business insurance providers, we specialise in public liability insurance and protect more trades than anybody else. Why not take a look now and build a quick, tailored quote?

Start your quote

Find this article useful? Spread the word.


Keep up to date with Simply Business. Subscribe to our monthly newsletter and follow us on social media.

Subscribe to our newsletter

© Copyright 2019 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.