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November 21, 2014

SME overtime adds £22bn to UK economy

SME overtime adds £22bn to UK economyOvertime worked by small business owners and managers is worth an estimated £22bn to the UK economy, equivalent to more than 1% of the UK’s annual GDP.

A poll of small business owners by Everline in conjunction with the Centre for Economic and Business Research (CEBR) has found that on average, almost four in five of those with responsibility for a small business reported working overtime in the past month, with 18% working 60 hours or more per week.

In addition, 52% of small business owners that usually work conventional weekday hours plan to work on at least one bank holiday over the next 12 months, with more than one in ten expecting to work on Boxing Day and on New Year’s Day (12% and 13% respectively).

For the majority (51%), working over bank holidays occurs because owners do not want to get behind on their work. The survey also found that it is the older generation of small business owners that tend to work longer hours.

The report authors have identified a lack of skills and the need to multi-task as a key reason that owners of small firms have to work such long hours.

Russell Gould, managing director at Everline, said: “Skills remain an issue for small businesses, and evidently working 9-to-5 is a misnomer for employers who are working longer days in order to compensate for those gaps. The worry is that … small business owners are spending too much time covering other people’s work when they could be focusing on growing their business.”

Sam Alderson, economist at CEBR, said: “A shortage of skills is constraining the ability of businesses to expand their resources and as such decision-makers are being forced to take on responsibility for a greater range of functions.”

He added: “While small business owners should be applauded for their dedication and hard work, it’s a shame that these qualities are being devoted to tasks such as administration rather than strategy and business development; areas that could translate into sustainable growth for the small business sector.”

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