Overworked and underpaid: the UK’s small business owner is undervalued
28 December 2006
As people head to their local corner shop for that necessary packet of batteries or a pint of milk during the Christmas-New Year break, research from small business insurer Zurich has found that shop owners are some of the most over worked and underpaid people working in the UK.
The Zurich research has found that small business owners are working as much as 72-hour weeks, taking no lunch breaks, having no holidays and in many cases taking home less than £20,000 per year for their efforts - the equivalent hourly rate as the minimum wage.
Nearly one in two (48 per cent) work six or seven days a week, with 18 per cent working over 12 hours every day. Fifty per cent of small business owners reported being too busy to take a lunch break.
The long hours are taking its toll on those in charge. Of the 1,028 small business owners questioned, over 40 per cent reported that their long working hours causes them stress. With 82 per cent of them saying they had taken no days off at all in the last year, it is no surprise that many (42 per cent) said they were concerned about the effect their work had on their families.
Over 70 per cent of small business owners fulfil roles in customer services, sales, operations, supply chain management, HR, risk management, premises and marketing - all combined into one. Sixty per cent also do their own accounts and 50 per cent look after distribution and IT.
Despite being jacks of all trades, the Zurich study found that only 51 per cent pay themselves a regular salary with forty-two per cent drawing pay depending on the success of the company’s business. Of those that do take a salary, 39 per cent take less than £20,000.
Small businesses in the South West and Wales appear to be the most overworked with 56 per cent of those in the South West shops working six or seven days a week. The Welsh seem to work the longest days with one in four working 12 hour days and 92 per cent taking no holidays in the last year.
David Nichols, Zurich Commercial’s Head of Package Business said, "UK small businesses form the backbone of our economy and they’re clearly working very long hours. We rely on them to be there supplying us what we want, when we want it, but working such long hours without a break will have a detrimental effect.
Owners need to take a holiday at some stage to recharge their batteries and if they’ve got the right insurance cover, this can help give them peace of mind while they are away.
"In the meantime, as we’re all relaxing and enjoying the last few days of the holidays, there’s an army of small businesses waiting for our custom."
