A report published this week reveals that one in four small business owners are planning to get out of business and back into employment as trading conditions are very tough, whereas others are scaling down their enterprise and seeking part-time work to supplement their income. The report also reveals that one third of small business owners have lost their drive and enthusiasm.
According to the report, a significant proportion of small and medium-sized business owners are thinking of returning to work with 50% saying that it is too difficult to be a business owner in the current economic climate.
A quarter (26%) of SME owners admit they no longer enjoy running their business, with a third (32%) having stated that they no longer have the initial enthusiasm when starting teir venture. As a result, the report also reveals that one in four (25%) SME owners are considering returning to the workforce as an employee.
A contributing factor may be the reduction in the money they have been able to take out of the business for personal use. Half of those (50%) surveyed have reduced the money they withdraw, over the past 2 years, with restaurant owners suffering the most. Nearly three-quarters (73%) of businesses in the catering sector have experienced a marked decline in the amount they withdraw from their business - with almost a third (29%) reporting a drop of between 20-25% and 10% reporting a drop of up to 50%.
There appears to be very little improvement in sentiment in 2012. More than one in three (35%) believes there is an increasing risk of an economic "double dip" recession, a further increase compared with 28% when the same question was asked in June 2008.
However, at Beer and Young we have been very successful at raising capital for struggling businesses; see our website for case studies.
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