60% of sole traders and SME senior managers believe that they have been sufficiently rewarded for risks they took in founding and running a small business, according to a new study by NIG.

The NIG survey of 600 SMEs also found that entrepreneurs feel their efforts are recognised by their peers and communities. Nearly three-quarters (72%) of those questioned feel valued for the role that they and their business play in society.

Steve Kingshott, director of uUnderwriting and pricing at NIG, said: “We wanted to know whether people who started or run a small business feel the benefits they gain are a fair return for the risks they take. The answer among those whose businesses survive is clearly yes. This is a reassuring finding for anyone thinking of starting out on their own.”

He continued: “Our respondents were also confident of their prospects with 76% predicting long term success and 18% saying they have an even chance of achieving it.

"The one caveat I would put on these results is that our respondents are, by default, SME survivors. Their businesses have succeeded but statistics show that one in three will fail in their first year. Problems such as poor cash flow, theft, arson and high levels of staff absenteeism can all have detrimental effects on fledgling SMEs. The ones who manage these risks and take appropriate insurance cover can clearly flourish.”

Looking at individual business sectors, the belief in having received sufficient reward is strongest in the finance sector at 71% compared with the cross-sector average of 60%.

The one sector that markedly bucks the trend is agriculture in which 69% of respondents believe they have not been sufficiently rewarded.

Regionally, the South East contains the highest percentage of satisfied entrepreneurs (66%) while Scotland contains the lowest (48%).

The NIG research shows that size of SME has little impact on feelings of satisfaction and value.

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