According to a recent study, around £22 billion is steered into the UK economy by small business owners working more than the prescribed hours.
The research was conducted by the Centre for Economic and Business Research (CEBR) and Everline, an online business loan provider. The study discovered that over one per cent of our country’s annual Gross Domestic Product (GDP) is contributed by the overtime of small businesses.
More than 1,000 decision-makers from small companies were included in the study, and almost 80 per cent admitted to working overtime during the last month, with over 60 hours a week being worked by 18 per cent. More than half of those surveyed from a sector with traditional working days said that they planned to work during a bank holiday over the coming year.
The UK economy could be boosted by around £1.7 billion, thanks to those doing longer hours. The study looked at the reasons why small business owners opted for overtime during bank holidays and discovered that, in many cases, they don’t want to fall behind with essential duties. Finance, administration and marketing are all more likely to be the responsibility of the main decision-maker in a small company.
According to the manager at Everline, Russell Gould, the skills shortage is an issue for many business owners. An economist at CEBR, Sam Alderson, said:
“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.”
One solution for the owners of small companies is to outsource. Although it may be viewed as an additional expense, outsourcing leaves the owners free to concentrate on business development.
What can be outsourced?
Most tasks can be outsourced by a company, although duties that require a high level of knowledge and skills you don’t have are best outsourced. Bookkeeping, accounting, payroll and IT services can all be handed over to someone else, while you build the business.
Reasons to outsource
Outsourcing tasks will reduce costs over the long term. Rather than struggle to complete your bookkeeping while everyone else is settling down to a Christmas dinner, let a professional keep the business records up to date and legitimately reduce your tax bill at the same time.
Accuracy is crucial when running a business, especially when dealing with HMRC. Rather than risk a penalty, outsource to a professional company, like us!
How many hours do you devote to your company? Let us know by using the comments box.
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We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!