36% of UK small business owners pay themselves below minimum wage
Over a third of UK small business owners have paid themselves less than statutory minimum wage over the past 12 months, according to a report by Startups.co.uk.
The growing financial pressures for business owners has been highlighted further, as three quarters of SME leaders have sacrificed their salary in the past year to support their business.
45% of business owners have also dipped into personal savings to fund operations.
These sacrifices have cost business owners thousands in personal income, with 20% reporting that they gave up between £10,000 and £34,999.
A further 3% reported sacrificing £50,000 or more, while 5% preferred not to disclose the amount.
Less is available for entrepreneurs to spend on everyday expenses and unexpected costs.
The report also highlighted that 23% of business owners took on personal debt to keep the business solvent and 18% voluntarily reduced their pay to prevent staff layoffs or hiring freezes.
The survey’s results come shortly before the Autumn Budget which will be outlined on the 28th October by Chancellor John Healey. Healey is predicted to focus on target tax measures, cost-of-living relief, and fiscal discipline.
The Budget’s implications for taxation, business costs and wider economic support could prove particularly significant for entrepreneurs balancing the need to sustain their businesses with their own financial security.
For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.
