52% of SMEs are spending too much

According to the poll, 52% admit that they got carried away with spending on equipment and supplies, with a further 48% admitting they rented or purchased an expensive property.

Research showed that two fifths of UK SME owners admitted to being in financial trouble, with as many as half of these admitting they don’t think their company will bounce back.

VoucherCodesPro.co.uk conducted the research as part of an ongoing study into the financial circumstances of both individuals and business around the UK. 732 British SME owners, all of whom had launched their company within the past three years were quizzed about how they found running their start-up. 

Initially all respondents were asked what their main reason was for setting up their own company, the most popular responses included; wanting to be their own boss (37%,) wanting the flexibility to work as and when they wanted for their family (32%) and wanting to get rich (21%.) All respondents were then asked about the financial state of their company, to which two fifths, (42%,) stated they were in financial trouble and only a third, (33%), stated that the company’s finances were going from strength to strength. 

According to the poll, out of those who admitted to being in financial trouble, 51% admitted that they weren’t sure if they could bounce back and save their company. Of these people, 25% were optimistic that they could learn from their mistakes and 26% said they regret setting up their own company.

Nick Swan, founder and CEO of VoucherCodesPro.co.uk, said:

“Launching your own company is always going to be a massive risk, whether it’s your first time or you’ve got a whole portfolio of successful businesses. It’s about believing in yourself and venturing out to try something new and show the world what you’re made of. Like the results of this study show, even if the company does fail, it’s not necessarily a failure if you learn from the mistakes you made and try again. Business is unpredictable, it always has been and always will be, and the economy doesn’t always help, but you won’t know if you can do it unless you try.”