Improved Lifestyle More Important Than Money For UK Small Businesses | MORE TH>N Newsroom

Improved lifestyle more important than money for UK small businesses

It’s ‘fambition’, not ambition, for UK small businesses
 ‘Meaning’, not money, is increasingly the order of the day as ageing population and world events take their toll
 Just 16% of small business owners said they started or run a business to ‘make lots of money’
When it comes to starting and running a business, the dream of riches seems to be a thing of the past. These days, business ambition has given way to ‘fambition’, which puts the spotlight firmly on lifestyle issues such as family time, time off and happiness, according to the MORE TH>N Business Foresight Index, which assesses trends in small business ambitions on an annual basis.
- 84% of small business owner managers said they started or run a business to get a better lifestyle
- Just 16% said they were in business to ‘earn lots of money’
This shift from ambition to ‘fambition’ is also demonstrated when small business owner managers consider the optimum future size of their business – on average, for most business owner managers, having four employees is classed as ideal.
The picture is very similar when growth plans are assessed. Although the Index shows that the average desired lifetime growth (based on number of employees) is around 54%, the real picture is far less ambitious. In fact, most small businesses clearly believe that they are already at or near their optimum size. On average:
- Sole traders only want to hire one member of staff
- Businesses currently employing a total of four people would only like to grow to five employees
- Small businesses currently with a total of with ten employees think eleven would be their ideal size
Grey future?
The ageing population in the UK could be one explanation for small businesses’ modest ambitions. The Index shows that the older the owner manager, the more lifestyle focused they are, with the desire to run a larger business gradually decreasing as people get older:
- In the 16-34 age group the ideal size of business is considered to be 10 employees
- In the 55-64 age group two employees is considered the optimum business size
The research also shows that owner managers get happier as they get older:
- Just 5% of 16-34 year olds are totally satisfied with the lifestyle their jobs offer and 8% are totally satisfied with the performance of the business
- In the 55-64 age group, those figures rise to 17% and 14% respectively
As the UK population continues to age, it is likely that this trend will continue, with money-driven entrepreneurs accounting for a shrinking slice of the small business market over time.
Home comforts
Psychologist and life coach, Dr Sally Ann Law, suggests that events such as the war in Iraq and global warming are also significant factors. She believes they are driving a fundamental shift in the way we view the world and our ability to influence our long-term future.
She said: “There is no doubt that recent significant world events have affected the way people think about themselves and their future. In response to the perceived inability to influence a lot of big issues, such as bird flu, terrorism and global warming, in the immediate future people often tend to cherish things like family and quality of life all the more. That is certainly reflected among many of the people that I see in my capacity as a life coach.”
Charlie Duggan from Bishopston, Bristol, has been running his own company, Charlie Duggan Associates (www.charliedugganassociates.co.uk) for just over two years. The company specialises in helping companies to plan and implement the outsourcing of selected parts of their recruitment processes. Charlie said: “Before setting up my own company in March 2004, I worked for a consultancy with a head office in London. As my responsibilities increased I found myself spending more and more time travelling up to London, which meant seeing less of my family in Bristol.
“In today’s volatile climate you tend to take stock of what is important, and to me my family will always come out on top. Running my own business has enabled me to enjoy more time with my family, use my strengths to their best ability and take control over my working life.”
MORE TH>N Business manager, Rachel Cotton, said: “There are more than a million small businesses in the UK run by people who put lifestyle first – the alterpreneurs – and they employ a further six million people. Another 179,692 small firms are run by people who fit more closely with the traditional idea of an entrepreneur.
“The fact that so many businesses in the UK are now driven by the desire to have a good lifestyle means that the type of support they require is likely to be quite different from support and services needed by more money and growth focused businesses. Organisations such as insurers, as well as the government, will have to take this into consideration and act upon it.”
Ends
Notes to editors

About the research
The research was carried out by Critical 2 amongst 825 business owner managers during February 2006.

via newsroom.morethan.com