Small business owners are not very green or charitable - but they enjoy meeting people

The life and attitudes of small business owners are something that policymakers, support agencies and other business owners are understandably obsessed with, bearing in mind we are collectively the lifeblood of the UK's economy.

EnterQuest's most recent survey looked into small business owners' attitudes and opinions about using business plans both at start up and at other key times in the business life cycle.

The survey also sought our readers' opinions about their management style, how they measure success, and what excites and frustrates them the most about running a small firm in the UK.

The headline results from the survey were as follows:

• 80% of business owners had a business plan at start up but only 56% had it written down formally.
• Making a profit was the number one measure of business success - managing carbon footprint was the least important (only 6% of respondents quoted this as very important to them).
• 76% said independence and flexibility were the most satisfying factors about running a business, with being green and ethical at only 12%.
• 78% said late paying customers was the most frustrating aspect of running a business followed by Government support at 57%.

Here is a summary of survey responses for each question asked.

Using business plans

When asked about whether a business plan was used to help start their business, responses were as follows:

• Used a formal written plan - 46%
• Used a formal written plan purely to raise finance - 10%
• Had an informal, unwritten plan - 26%
• No plan used, just 'went for it' - 17%

Management style

When asked to describe their management style, responses were as follows:

• Formal and strategic - 15%
• Fairly disciplined but only when needed - 52%
• Informal, laid back and reactionary - 25%
• Manage by seat of my pants - 3%

Measuring success

When asked what most accurately reflected the way they measure success in their business at the moment, responses were as follows:

Reported as very important

• Making a profit - 71%
• Paying the bills and balancing the books - 66%
• Healthy order book - 54%
• Enough time for myself or family -  47%
• Growing the business - 47%
• Hitting sales targets - 37%
• Employing people - 10%
• Managing my carbon footprint - 6%

The main motivators

When asked the question about what motivates them the most about running a business, the survey responses were as follows:

Reported as very motivating

• Independence and flexibility - 77%
• The people you get to meet - 53%
• Making money - 47%
• The diversity of each day - 45%
• The unknown/the adventure - 27%
• Being charitable and socially responsible - 17%
• Being green and ethical - 13%

Frustration factors

When asked what frustrates them most about running a business, survey responses were as follows:

Reported as being a frustration

• Late paying customers - 78%
• Not enough time in the day - 68%
• Support from Government - 57%
• Isolation - 38%
• Support from the bank - 37%
• Your own ability - 28%
• Dealing with employees - 26%

Discussion points

It is encouraging to note that small business owners in our survey are good planners, whether that's in a formal or informal way.

Effective business plans do not have to be written down, and our survey confirms this - it's as much about business owners knowing what needs to be done and by when, and being in control of the business rather than the other way around.

Managing a business in a formal, rigid way is not for most of us, and more than three-quarters of respondents describe their management style as being laid back and only disciplined when they needed to be.

The most striking results, however, were attitudes towards social responsibility and green business issues - or more accurately a disregard for them. Only 6% of respondents think that managing their carbon footprint is important compared to over 70% for making a profit.

And for personal motivation, respondents highlighted that independence and meeting people are business owners' main satisfaction factors, while only one in six are motivated by being socially responsible, and one in eight by being green.

Something to think about for the policymakers.

The survey was carried out online in May/June 2010. Respondents were readers of our EnterQuest newsletter and Better Business magazine.

Nearly half - 45% - of respondents were self-employed or freelance, 37% were business owners with 1-9 staff, 9% employed 10+ staff and 7% were not yet trading. Almost 60% had been trading for more than three years.

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