A rising class of micro-business owners are more interested in their quality of life than growing their business, new research finds.
A report from small-business insurer MORE TH>N Business finds that less than a quarter of people starting new businesses are setting up their firms with the intention of making lots of money.
The survey of 1,000 owner-managers of businesses employing five or fewer people found that 60% started their business in order to get more control over their lives, and 54% said they made the entrepreneurial move in order to be “happier”.
Dubbed “alterpreneurs”, many people quitting the corporate life are starting their own companies as a lifestyle, rather than a career choice, and the study found that 70% of its respondents are happy and comfortable with their business as it is. Over half said they never want to employ more than 10 members of staff.
“This research leaves us in no doubt that we are seeing a reaction against the steadily increasing pace of modern life,” said Rachel Cotton, manager of MORE TH>N Business. “Alterpreneurs are motivated by lifestyle rather than career or financial ambitions, which is reflected in a steadier, more relaxed approach to business.
The insurer’s report also found that “alterpreneurs” make up nearly 70% of the UK’s small business market, running approximately 2 million micro-businesses and generating over £2 billion in annual revenue.
Many owners of these businesses, however, feel shunned by the government, with three-quarters stating that the government needs to do more to support smaller firms that do not have ambitious growth plans.
“The government is missing the target by aiming support at start-ups with big growth plans when many businesses are happy as they are,” said Stephen Alambritis, head of Parliamentary Affairs at the Federation of Small Businesses (FSB).
“There needs to be a greater focus on established firms, and moves to tackle the administrative headache of taking on employees to making growing a business more appealing,” he added.
