Over three-quarters of small business owners will carry on working while they are on their holiday, according to a survey) by Purbeck Insurance Services, the provider of personal guarantee insurance for business loans. This comes as 57% regularly exceed the average 36.5 hours worked by full-time employees across the UK.. While many full-time employees head for relaxing summer breaks, the stresses and strains of running their own business means that SME decision makers risk burnout.
Alarmingly, 14% of SME business owners say they spend up to 70 hours working each week, sacrificing evenings and weekends to keep their business running. As these extended hours place pressure on day to day life, the need to unwind and relax on holiday becomes more critical. According to Purbeck, businesses in the North East are the most likely to switch off completely on holiday with 38% saying they never work on holiday. Business owners in Wales and the West Midlands are least likely to, in fact a quarter say that they always work on holiday.
The need to work long hours is unsurprising to many small firms as increases in utilities, labour costs and taxes mean 85%iii) are reporting rising costs. As economic pressures mount a growing number of SME owners and directors have signed a Personal Guarantee in order to secure a loan and keep their business afloat. This in turn can place additional pressure on them to work longer hours, as the significant burden of the guarantee hangs over them, placing them at personal liability for the debt and putting their personal assets at risk.
Comments Todd Davison, MD of Purbeck Insurance Services, “Being your own boss undoubtedly has its rewards, but the ability to truly switch off is essential for long-term performance and wellbeing. We understand the financial pressures small business owners face, especially the growing reliance on personal guarantees when securing funding.
That’s why it’s so important for SME leaders to take steps to manage these risks. Taking out personal guarantee insurance is a practical and straightforward way to protect personal assets and ease the mental burden. Summer holidays will always be a juggling act for small business owners, but knowing their personal finances are safeguarded can help them relax and recharge more effectively while they’re away.”
