The research concluded that growth of a company was overwhelmingly harder than starting up, with 41 per cent of owners agreeing, and only 10 per cent finding starting up more difficult. The greatest challenges to business growth were identified as lack of money for investment (51 per cent), excessive legislation (47 per cent), and lack of time to dedicate to growth (46 per cent).
Factors holding business owners back from growing further were again cited as excessive legislation (34 per cent), and the cost of growth (29 per cent). However, the highest scoring factor in this category was ‘looking for a better work/life balance, not burn out’, with 39 per cent of respondents agreeing. Focusing on what these SMEs employ for key growth strategies, the research suggests firms are using rather old-fashioned business principles. Respondents cited ‘using their instincts and seizing every opportunity’ (45 per cent) and ‘determination to see it through despite all the trials’ (40 per cent) as most helpful in growing the business.
Interestingly, company owners with six or more staff valued employee development and retention highly (32 per cent), whereas this option was considered key by only 10 per cent of those with two to five staff.
Owners of smaller companies placed more value on developing their own abilities, rather than on those of employees, with sole traders (24 per cent) and small enterprises (25 per cent) citing their own skill set as important, compared with only 12 per cent of those with six or more staff.
The nationwide survey of small and medium enterprise owners was carried out by research company YouGov for Panasonic, with over 800 business owners participating.
The project’s aim was to examine and understand why only three per cent of UK businesses ever grow to more than 100 employees, and whether they indeed want this kind of growth.
