HR Fred Heritage · 15 September 2016
Startup growth stalled by founders? DIY attitude? to admin
Small and micro business owners are increasingly sacrificing time for creative thinking at their firm by taking a “do it yourself” approach to administration, new research has found. According to online bookkeeping platform Geniac, 61 per cent of smaller UK business owners conduct administrative tasks themselves, filling up their working day dealing with issues including legal matters, account handling and basic HR. As such, startup founders struggle to make time to think creatively and strategically about how to grow their business. Brainstorming a method often used by small teams to think critically about how to tackle specific tasks was found to have been neglected by a third of founders, while 28 per cent failed to spend time working on new business proposals or developing new products. A similar proportion failed to spend time with their customers. Overall business growth amongst startups is suffering as a result. As many as 73 per cent of small and micro company owners surveyed said they thought their venture would grow at a faster rate if they spent less time on administrative tasks. Commenting on the findings, Geniac co-founder Mike Galvin said: What can seem like a cost-cutting exercise on paper can quickly become an expensive mistake. A business owner should be doing what they do best, solving core business issues and not being distracted by admin overload. This administrative burden could be contributing to the overall health of business owners themselves. Last year, a study from Worldpay revealed that 70 per cent of business owners in the UK didnt believed their work-life balance was unhealthy, with one in five claiming not to have taken a week’s holiday in ten years.
ABOUT THE EXPERTFred Heritage
Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.