Nearly two-thirds of small business owners would support the equivalent of an annual MOT road test for their business if it meant increasing the health and potential of their business, a survey has revealed.
A new study by Begbies Traynor has found that despite persistent complaints of government red tape, three out of every five owner managers are in favour of the concept of an annual business check-up.
Bosses polled overwhelmingly agreed that fewer businesses would go bust if they had to pass regular MOTs and felt that companies would be much more informed about the basics of running a business.
What’s more, 64% said that passing a regular check-up would help their business attract and retain better employees.
Some 83% also said that any such exam should test businesses’ knowledge of company law.
“You need a license to drive, a certificate to get married, and a permit to go fishing, yet you can start a business and borrow money with zero experience or official permission,” said Paul Davis, partner at Begbies Traynor.
“We see thousands of businesses each year that are in trouble, and frankly if they were able to prove basic competence in areas such as finance, marketing and recruitment, many more would be thriving today rather than needing our help to survive.”
Despite their enthusiasm for regular health checks, respondents were almost unanimously opposed to making entrepreneurs pass a test or complete a course before being allowed to start a business.
Nine in 10 owner managers said this would deter budding entrepreneurs from starting up.