LONDON, June 28, 2012 /PRNewswire/ --
The 'can do' attitude that entrepreneurs need to survive and
thrive could also be their Achilles heel, according to new research
released today by specialist insurer Hiscox. The
research[1] found that despite 71%
saying that legal and 43% saying that accounting issues should be
handled by a professional, only 30% of small business owners
actually employ full and/or part time help in these areas of
expertise.
When asked which area of running a business they lacked the most
knowledge of, over half of respondents said legal (52%) followed by
taxes (42%), IT (22%), insurance (19%) and sales and marketing
(23%). But over three quarters (77%) do not believe this to be a
threat to their business, and 36% are determined to find a way
through any problems themselves.
Over a third (35%) of small business owners say their passion
for their idea gets them through the pressures of day-to-day
management of their business and 48% believe pressure is what they
signed up for when they started out.
"We know that entrepreneurs are committed to giving their
businesses nothing less than a hundred per cent and they are often
stretched to become a 'jack of all trades'. Our research shows
there could be a skills gap between what they admit they lack
knowledge of, and what they are willing to invest in," said
Deepak Soni, small business
insurance expert at Hiscox. "There comes a point when small
business owners need to trust other experts to help them with the
more complex and technical issues associated with running a
business."
Despite the potential hazards of legal and financial errors,
more business owners employ an office manager than an accountant
and/or in-house legal counsel (19% vs. 5%). Although, if they could
employ another person, 18% believe that the professional assistance
that would be most valuable to their business would be an
accountant/lawyer.
The research also found that business owners handle the majority
of office tasks including:
- Ordering
supplies
- 80%
-
Filing
- 77%
- Paying invoices
- 71%
- Preparing
invoices -
70%
- Printing/ binding
documents -
70%
- Opening the business in the morning - 67%
- Closing up at
night -
66%
- Cleaning the office
space -
58%
- Reception duties
- 54%
- Customer
deliveries -
49%
Deepak Soni adds: "It is
important for entrepreneurs to recognise when they need to seek out
expert advice and support so they aren't opening themselves up to
business critical risks. For example, a badly worded supplier
contract could lead to disputes down the line that could end up
breaking the bank or the relationship."
For more information about Hiscox business insurance, visit:
http://www.hiscox.co.uk/business-insurance/
Notes to editors
[1]The Survey Shop interviewed
a sample of 600 respondents, 300 from the UK and 300 from the US,
drawn at random from online panels of small businesses with fewer
than ten employees between 14 and 17th May
2012. The respondents were qualified as owners,
partners and directors. The research has statistical accuracy
of +/- 2% to +/- 4% for the whole sample at 95% confidence.
About Hiscox
Hiscox, headquartered in Bermuda, is an international specialist
insurance group listed on the London Stock Exchange (LSE:HSX).
There are three main underwriting parts of the Group - Hiscox
London Market, Hiscox UK and Europe and Hiscox International. Hiscox London
Market underwrites mainly internationally traded business in the
London Market - generally large or complex business which needs to
be shared with other insurers or needs the international licences
of Lloyd's. Hiscox UK and Hiscox Europe offer a range of specialist
insurance for professionals and business customers, as well as high
net worth individuals. Hiscox International includes operations in
Bermuda, Guernsey and USA.
For further information on all Hiscox business insurance
products or public liability quotes please visit
http://www.hiscox.co.uk
For further information please contact:
Hiscox
Abi Clark
abi.clark@hiscox.com
+44(0)207-448-6470
Johanna Boland
johanna.boland@hiscox.com
+44(0)207-448-6494
CJP Communications
Kerryn Dinsdale
kdinsdale@cjpcom.com
+44(0)207-074-1836
Saira Khan
skhan@cjpcom.com
+44(0)207-074-1837
SOURCE Hiscox
