Running start-ups severely impacts on financial and family life

Small business owners have revealed they are facing greater financial worries having decided to set up their own businesses.

Around one in five individuals revealed that their family members had greater money worries after deciding to become their own boss.

The study from Scottish Widows suggested that running a small firm was impacting on people’s wellbeing, from a financial, mental and family point of view.

While 20% of owners said they were more stressed since launching their business, 19% also said they finances were affected.

This is reflected by data from the Modern Family: Families in the Future report which revealed that 40% of people prefer the financial security of being a permanent employee.

Some 39% of workers also said that having the benefits they get with a full-time role was more appealing that wanting to go things alone.

However, running a business was found to provide increased flexibility, although more than one in ten people said owners struggled to switch off from business.

Self-employment is on the increase in the UK, but the study suggests it is not for everyone, especially those with young families.

It is widely suggested that anything between 50% and 90% of start-ups will fail, with a lack of finance, skills, poor management and having no market need for products often the main reasons as to why.

Late payment issues and digital security breaches can also severely damage a business’ ability to overcome debts or operational problems and may ultimately lead to it facing insolvency.

If a business does need to raise finance and is unsure of the best way, a number of alternative finance options exist – needs will vary by business though, so it’s important to assess every opportunity before making a decision.

Support is available from a wide range of sources depending on the requirements of a business, but those facing financial strife should seek advice at the earliest possible opportunity.

By Phil Smith

If you would like to have a free no obligation chat with one of our advisers please call us on 020 7186 1144.

View all Business Insights