The Suncorp SME vs Me Report reveals one in three SMEs use personal finances to manage their cashflow, and a quarter of sole traders and new business owners (in operation less than three years) haven’t been paid by their business in the past 12 months. Only one in five make personal superannuation contributions.
Suncorp CEO Customer Platforms, Gary Dransfield, says that while business owners were satisfied with their business performance, many were overlooking their personal wellbeing to achieve business success.
“Despite more than half of SMEs admitting it’s important to keep personal and business finances separate, our findings highlight many SMEs prioritise their business over their personal wealth and wellbeing,” Dransfield says.
“More than two thirds of owners have experienced personal challenges including fatigue, financial stress, loss of motivation or relationship strain because of work-related matters.”
Despite the personal sacrifices, the Suncorp SME vs Me Report found businesses were generally satisfied and understood managing a business required a long-term view.
“Business owners aren’t motivated by instant gratification or quick success. It takes at least three years for a business owner to feel confident and satisfied about their business’s profit generation and outlook,” says Dransfield. “Similarly, while many new businesses don’t expect to meet their 12 month goals (84 per cent), its pleasing to see one third are confident in reaching their five-year goals.”
Technology and digital tools were revealed as key ingredients to business capabilities with confidence levels being higher among SMEs with social media, a mobile app or search engine optimisation (SEO).
“As technology and digital capabilities continue to enhance and evolve, so do the opportunities for business. We found businesses that use online or digital tools are more confident in reaching their medium-term business goals.
“Interestingly, nearly half of SMEs with plus 10 years of tenures don’t use any online or digital tools within their business which could potentially explain why business confidence and expectations of profit generation drop after the 10-year mark.”
Being boss was revealed as the key motivation for starting a business, followed by passion and work-life balance.
“Generally, business owners were likely to be more satisfied with their work-life balance – despite a fifth working a 60 plus hour work week – when they found time to look after their health, ensured work didn’t intrude on their personal life and completed their work within normal hours.
“These insights reinforce the need for small businesses to make time to prioritise their well-being and life outside their business.”
“Time is so valuable to small-business owners, yet it’s the one thing they rarely have enough off. There are many solutions available– digital software programs, business dashboards, business advisors, accountants – which can remove operational complexities and alleviate some time pressures,” concludes Dransfield.
Inside Small Business
