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ZEMPLER BANK RESEARCH SHOWS MICROBUSINESSES STRUGGLE TO MAKE OVER £ 10,000 IN SALARY
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THE RESEARCH SHOWS THAT GOING OUT ALONE ISN ’ T ALWAYS IMMEDIATELY LUCRATIVE AND POINTS TO POSSIBLE REASONS WHY .
EMPLER BANK HAS
Z published its latest insights to highlight the day-today challenges facing UK entrepreneurs . For many of the UK ’ s 5.3 million microbusinesses , the opportunity to be their own boss is highly attractive , but entrepreneurship isn ’ t without its challenges .
When asked how much they take in salary from their business after tax , over two in five ( 41 %) microbusiness owners said they are taking home less than £ 10,000 in salary per year , with nearly one in ten ( 9 %) not drawing any salary at all . This number is significantly higher among female business owners with almost half ( 49 %) taking home less than £ 10,000 , compared to almost one-third ( 32 %) of men .
The research shows that going out alone isn ’ t always immediately lucrative and points to possible reasons why . Over four in ten ( 41 %) said that finding customers is a major challenge and 28 % identify recent inflationary pressures of the growing cost of materials and supplies . One in four respondents highlight managing cashflow as a major issue .
There is a silver lining . As businesses begin to establish themselves , these numbers improve considerably . The research shows over three-quarters ( 77 %) of business owners paid a salary of less than £ 10,000 in the first year – of which 28 % paid themselves no salary at all . This falls to 46 % in years one to three and continues to decline thereafter .
18 Intelligent SME . tech