3rd August 2015
UK’s microbusinesses benefit from family support economy to the tune of £64.3 million per week
Nearly two thirds (64%) of Britain’s microbusinesses rely on support from friends and family to run their business, new research has revealed.
Friends and relatives put an average of six hours a week into helping these microbusinesses stay afloat, the latest Big Issues for Small Businesses report from Lloyds Bank Insurance found.
Whilst four out of 10 (41%) microbusinesses pay their family and friends with an average salary of £14 per hour,just over half (51%) said this support is unpaid, meaning the UK’s family support economy could be worth around £64.3 million per week.
This support ranges from helping to make business decisions (40%), completing practical tasks (34%) and run errands (29%), managing social media accounts (10%) and helping with childcare (8%).
While partners are most likely to head up the family support economy (43% of businesses are helped by their other half) one in five (19%) also rely on their children, and almost three in ten (29%) use friends.
The benefit of this help lifeline is keenly felt by the nation’s microbusinesses, with the vast majority (84%) saying the contribution of friends or family has had a positive impact on their business.
Aside from increasing revenue (13%), increasing productivity (25%), making the business more manageable (35%) and providing emotional support (30%), nearly a quarter (24%) feel the help of friends and family is crucial in keeping their business running.
One in 10 (10%) microbusiness say their business would not be able to go on without this support.