SME owners blurring line between personal and business finances
More than a third of small business owners use personal finances to help with business cash flow, despite over half agreeing that personal and business finances should be kept separate.
Suncorp’s SME vs Me report revealed that close to two-thirds of small business owners experienced personal impact as a result of work stressors, including personal financial stress and loss of motivation.
New business owners of operations under three years were also less likely to pay themselves superannuation, with approximately one-in-five doing so.
Suncorp chief executive of customer platforms Gary Dransfield said the statistics revealed how many business owners were overlooking their personal wellbeing to achieve business success.
“Despite more than half of SMEs admitting it’s important to keep personal and business finances separate, our findings highlight many SMEs prioritise their business over their personal wealth and wellbeing,” Mr Dransfield said.
“More than two-thirds of owners have experienced personal challenges including fatigue, financial stress, loss of motivation or relationship strain because of work-related matters.”
The report also revealed that up to a quarter of sole traders of small businesses with less than three years in operation did not receive any pay or compensation in the past 12 months.
Correspondingly, two-thirds of business owners with less than three years in operation were unsatisfied with work-life balance and only a quarter were satisfied with experiences that have lived up to expectations.
“Business owners aren’t motivated by instant gratification or quick success. It takes at least three years for a business owner to feel confident and satisfied about their business’ profit generation and outlook,” said Mr Dransfield.
“These insights reinforce the need for small businesses to make time to prioritise their wellbeing and life outside their business.
“Time is so valuable to small business owners, yet it’s the one thing they rarely have enough of. There are many solutions available– digital software programs, business dashboards, business advisers, accountants – which can remove operational complexities and alleviate some time pressures.”