One third of small business owners in Yorkshire say that they not only regret starting their own venture, but would not go through the pain of starting their small business if they were to do it all again, according to a study.
And what is even more surprising than 33 per cent of small business owners being reluctant to travel down the entrepreneurial road in the region is that despite doing business in a digital age, an overwhelming 79 per cent of businesses continue to rely on the traditional method of ‘word of mouth’ rather than utilising social media to bring in new business.
According to the Viking Small Business Barometer report which focuses on the first three months of 2013 and the overall outlook for the year, owners and Managing Directors of small businesses within Yorkshire unsurprisingly cite lack of funding and the challenging economic climate as the reason for the startling admission, additionally attitudes across the region reflected the national consensus of 24 per cent.
Furthermore, SMEs in Yorkshire believe that their businesses have hit a slump with 33 per cent revealing that business in the first quarter of 2013 has remained stagnant in comparison to the final quarter of 2012 – which is below the national figure of 41 per cent.
Generating additional revenues will be top of the agenda as 29 per cent of business owners revealed it proves to be the most challenging. While improving brand awareness and increasing traffic to company websites were surprisingly low on the list of priorities (10 per cent combined).
Despite the slow start to 2013, businesses still remain optimistic with 65 per cent of SMEs across the UK expecting to grow their business and 29 per cent forecasting an increase in their company profits over the next three to six months. Start-up businesses (up to three years old) believe that having a mentor would be the one aspect that would improve their business.
Sophie Christopher at Viking said:
“It still continues to be a trying time for SMEs, and naturally with experience comes the opportunity for reflection on how your business has developed. Admitting to having second thoughts about starting a business simply indicates how much of a struggle Managing Directors and business owners are currently going through.”
The Viking Small Business Barometer is a quarterly tracker survey which speak to the same 1000 small business owners and Managing Directors across 15 sectors in the UK every quarter, in order to understand the thoughts and outlook of the country’s small businesses, which employ 14.1 million in this country and are seen as the key to economic recovery.
Last quarter’s research revealed that 40 per cent of small businesses believed that Government policies had no positive effect on their business, despite the announcement of the new Employment Allowance by the Chancellor in the 2013, figures still remain consistent (44 per cent) this quarter.