SMEs seek advice from loved ones rather than experts, study reveals

Aviva discovered that three times as many businesses rely on advice from friends and family as they do from financial experts, and that marketing, sales and bookkeeping skills are badly lacking among SME owners.

Aviva’s study found that 38% of business owners rely on advice from friends and family, but financial advisers (13%) and legal advisers (9%) were far less utilised. This data is worrying, but might just present everyone reading this with an opportunity. Firstly, if you are in need of business support, you know who to call. Secondly, if someone you know comes to you in need of help with their business, you know who to send them to.

Research consistently shows that those firms that seek advice are twice as likely to grow as those that don’t. Despite this, only half of all firms actually seek advice and about half a million small businesses have never taken any advice.

Advice from family and friends will always be well-meaning, and may even come by way of practical experience, but professional experts will always be able to give the most nuanced, independent advice on any given topic.

Others areas of the study focused on the main hurdles owners face at different stages of business and the lack of skills owners themselves have that restrict their progress.

The top three hurdles to overcome when setting up a business were identified as financial administration (32%), marketing and sales (31%), and understanding and fulfilling legal obligations as an employer or business owner (30%). These areas mirrored those that business owners identified as their own personal weaknesses, with three quarters of SME owners admitting they knew little about bookkeeping or marketing and sales. A whopping 85% said they had little idea about their legal obligations, leaving many in danger of breaking the law. Employers’ liability insurance is a must for the majority of businesses, with huge fines levied on those not meeting their legal obligations.

Luckily as a member of Buckinghamshire Business First, you can access support and advice on any business topic you require help with. Whether it’s to work out what your specific legal requirements are, help mastering marketing and sales, or support with finding new premises, taking on an apprentice, or accessing funding. Our business support team are on hand to help, so call 01494 568941 or email BusinessSupport@bbf.uk.com.

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