SME owners not identifying as entrepreneurs

Small business owners are unlikely to consider themselves entrepreneurs, research by AXA has found.

Less than half of individuals questioned identified with the title 'entrepreneur' and a similar number rejected the label altogether.

However, the research found differences between age, gender and region:

• 82% of small business owners under 24 claim to be entrepreneurs, compared with 32% of over 55s

• 52% of men see themselves as entrepreneurs but only 38% of women feel the same

• 60% of respondents in the north east identify as an entrepreneur, compared to 39% in the rest of England.

 

Nigel Holland from Holland & Co Chartered Accountants said:

“Many people who run successful businesses do not class themselves as Entrepreneurs even though this is exactly what they are doing. When a business person runs a small one man band this means that they are putting their financial future at risk. The success or failure of their business venture is dependent upon their standard of work and the business decisions which they make. Their profits are determined by these kind of things.

Entrepreneurs do not need to be high flyers, they include sole traders who make modest incomes. When someone sets out in business and also throughout the life of their business they need to regularly access the level of risk which they are exposed to. The risk exposure can be reduced by several methods including taking out business insurance and having effective quality control. Business planning is also an important tool which can help identify and reduce risk.”