Early-stage SMEs supported by family and friends
11th June 2015 | News
A third (30 per cent) of UK-based small business owners have been able to call upon voluntary support from at least two family members during their start-up phase, according to new research by Vistaprint.
The hands-on assistance received from family members and friends saves these micro firms £1,036 in wages on average during this critical period.
On average, voluntary helpers work four-and-a-half hours a week, although five per cent of micro business owners reported one generous family member or friend working for free at least 20 hours a week.
Spouses and partners (35 per cent) are the most likely people to offer their services voluntarily, followed by sons and daughters (19 per cent) and friends (15 per cent).
The top responsibility most start-up owners require help from a friend or family member is organising accounts (24 per cent), followed by call taking (20 per cent), general office administration (18 per cent) and business advice (17 per cent).
Richard Moody, marketing director, Vistaprint UK, said: “The vast majority of micro business owners are sole proprietors, and it is clear that the support and free labour devoted to them have benefited them both financially and on an emotional level.
“A thousand pounds may not seem like a lot, but in the early stages of a business every saving is vital.
“From our study we have found that the average investment made into start up micro businesses is £15,951, highlighting how much the additional free assistance can help when saving money.
“And of course the feeling of being supported in your efforts by those close to you is absolutely priceless.”
Accounts and cash flow positions are high priorities for business start-ups and should not be viewed lightly.
Instead of asking a family member or friend to organise the books, why not come and talk to us? You can have a free initial consultation with your local TaxAssist Accountant to discuss your financial position.
Simply contact us online or call our friendly team on 0800 0523 555.