More than a million Australian small business owners have made significant sacrifices in the past year in order to keep their business afloat according to new research.
From dipping into savings to cutting back on groceries and foregoing takeaway food, it’s been a year like no other for the nation’s small business owners. Yet, the Vistaprint Small Business Recovery Report found seven in ten (71 per cent) believe their sacrifices have been worth it to keep their small business dreams alive.
The national survey found that around two in five (38 per cent) of small business owners who have made significant sacrifices have taken on additional work. While one in five (18 per cent) borrowed a significant amount of money from a friend or family member. Some small business owners have made significant personal sacrifices by re-mortgaging their house (5 per cent) or putting off having kids (5 per cent) to keep their businesses afloat.
Almost half (45 per cent) of small business owners surveyed identified as “SOOs”, a new term coined for sole owner operators. Another popular term was Owntrepreneur (30 per cent), a hybrid term that lends itself to the responsibility, flexibility and all-encompassing nature of being a small business owner. When it comes to sacrifices, personal niceties were the first things to fall by the wayside.
Top 10 Sacrifices made by small business owners
- Cut back on dining out/buying takeaway food and coffees (62 per cent)
- Dipped in savings (60 per cent)
- Cut back or stopped buying expensive snacks and drinks in our grocery shopping (50 per cent)
- Made a conscious effort to reduce use of electricity/gas to save on utility bills (e.g. used appliances during off-peak times, reduced/stopped using heater/air-conditioner/clothes dryer) (48 per cent)
- Gave up entertainment and shopping subscriptions (40 per cent)
- Taken on additional work (38 per cent)
- Started making meal plans and changing the way we shop for food to reduce food wastage (38 per cent)
- Borrowed a significant amount of money from a friend or family member (18 per cent)
- Gave no Christmas or Birthday presents to whole year (16 per cent)
- Put off wedding, large birthday party or similar big event (14 per cent)
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