For many it's the dream - no boss, no fight for time off, and the chance to watch a company grow.
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company → watch → time
But the reality for many small business owners is not quite as glamorous, with one in three saying they are forced to work a second job to survive.
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they → say → job
Of these around half (44 per cent) started their business as a side hustle in the first place, according to Mentoring Matters: Four Years On, a report published by Enterprise Nation in partnership with Newable and the Association of Business Mentors.
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half → start → Mentors
And owners are racking up the hours, with the average boss putting in 45 hours a week on their business - on top of whatever time they commit to a second job.
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they → rack → job
Nearly three in five (57 per cent) small business owners have never had a mentor, a figure which climbs to 63 per cent for sole traders.
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which → have → traders
With just over a week to go before John Healey's first budget, the report - drawing on 3,406 responses across seven polls since spring 2023- reveals the struggles of the UK's 5.7million small businesses – often seen as the backbone of the economy.
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report → go → economy
The latest report follows a September Growth on Hold study of 526 UK-based small businesses which found one in five (22 per cent) store owners say more than a quarter of shopfronts near them are vacant.
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quarter → follow → them
Meanwhile nearly two-thirds (64 per cent) of respondents believe Britain is a harder place to operate than its European peers.
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Britain → believe → peers
A third of small business owners say they're being forced to work a second job to survive (Stock Photo)
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they → say → Photo
It found more than three-quarters (77 per cent) of high street businesses have delayed growth plans, while two in five (42 per cent) have been forced to cut customer-facing staff.
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quarters → find → staff
High street firms are also significantly more exposed to business rates, with the study citing two-thirds (67 per cent) of shops paying them as opposed to just one fifth (21 per cent) of businesses elsewhere.
And across all small businesses surveyed, more than two-thirds (69 per cent) have delayed or cancelled a growth plan in the last year, while half have cut investment opportunities.
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half → expose → opportunities
Employer National Insurance, business rates, supply costs and energy bills were specified as adding to the squeeze, but six in ten businesses said VAT was among their top three pressures.
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VAT → specify → pressures
It has been suggested that business rates could be slashed for thousands of small businesses in this month's Budget in a bid to revive flagging High Streets.
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rates → suggest → Streets
The Chancellor, John Healey, was last month said to be considering possible changes to business rates relief which could exempt some businesses from the tax altogether.
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which → say → tax
In a bid to progress PM Andy Burnham's pledge to make High Streets, which are 'markers of decline ', into a 'symbol of Britain's renaissance', Mr Healey has apparently held workshops with business groups to hear first-hand how he can breathe life into the UK's struggling shops.
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he → progress → shops
With Mr Burnham calling on Labour to 'listen to small businesses more' to boost economic growth, it was reported today that Mr Healey has held a series of such workshops over the last fortnight.
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Healey → call → fortnight
One possible option he has is to increase the threshold for small business rates relief (SBRR) in order to exempt firms in premises with a so-called rateable value of less than £12,000.
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he → have → 12,000
This SBBR £12k rate was frozen while a nationwide revaluation took place.
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revaluation → freeze → place
But if the Chancellor increases it in line with inflation, it would rise sharply to £17,096, meaning thousands of companies could benefit from paying no business rates at all.
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thousands → increase → rates
Meanwhile, tapered relief could be introduced for businesses in properties with a rateable value of up to £20k.
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relief → introduce → 20k
The Growth on Hold report also exposed how vast proportions of traders are cutting staff (42 per cent) or delaying growth plans (77 per cent) due to the mounting costs of simply doing business.
The report also highlighted how more than half (54 per cent) of High Street traders want the Chancellor to use the Budget to cut VAT and ease the burden on them.
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Chancellor → expose → them
Enterprise Nation's latest Small Business Barometer, meanwhile, recently revealed three in four traders pay themselves just £7.75 an hour – less than the Living Wage.
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traders → reveal → Wage
The Mentoring Matters report also highlights how mentoring goes hand in hand with seeking help: more than half (56 per cent) of mentored owners looked for business support in the last year.
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half → highlight → year
Among owners who have never had a mentor, two-fifths (43 per cent) looked for business support in the last year.
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fifths → have → year
Many looked online for answers, with most consulting private-sector business support (77 per cent) or Government websites (63 per cent).
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most → look → support
Around half sought help from business books or podcasts (49 per cent) or social media (48 per cent).
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half → seek → books
Almost a quarter (24 per cent) of owners who sought business support said they could not find anything that worked for them.
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that → seek → them
The report reveals that entrepreneurs who have received mentoring are more likely to be looking at growth over the next year.
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who → reveal → year
More than half (53 per cent) of mentored entrepreneurs expect to take on new employees in the coming year, compared to just over a third (36 per cent) of those without a mentor.
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half → mentor → mentor
Aaron Asadi, chief executive of Enterprise Nation, said: 'The world small businesses work in has changed sharply since our first report in 2022.
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businesses → say → 2022
Cost pressures have not gone away, and owners are running leaner, working longer and making more of the big calls alone.
'
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owners → go → calls
Too many are doing it without anyone to turn to.
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many → do → anyone
Nearly three in five small business owners have never had a mentor, and the owners with least to fall back on are the least likely to have one.
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owners → have → one
'Mentoring works:
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Mentoring → work → ?
Management participants rate it above everything else the course gives them.
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course → rate → them
The next step is to put a trained, matched mentor within reach of the solo founders and smallest firms the current course does not cover.'
Flora Hamilton is Executive Director of the Small Business Charter (SBC): 'Good mentoring needs a human dimension.
'
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mentoring → put → dimension
This is what will bring critical thinking, challenge and judgement, and it keeps decisions grounded in integrity and responsibility.
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it → bring → integrity
Minister for Small Business and Enterprise, Lord Leong said: 'Having built and run my own business, I know first-hand that the journey of an entrepreneur can be challenging, and that having someone experienced to turn to can make all the difference.
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having → say → difference
It gives business owners the confidence, practical insights and encouragement to overcome obstacles, seize opportunities and achieve their ambitions.'
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It → give → ambitions
The Aporia
