Taking it SMEazy Taking it SMEazy

Married to the job: 1.5 million sole traders unable to take a day off in the last year

  • A third of sole traders in the UK have been unable to take a day of annual leave in the past 12 months
  • The average SME decision maker took just 13 days of annual leave last year - considerably less than the legal minimum
  • Many SME decision makers are counting the cost of their holiday, with every day of leave valued at a loss of £622.50 in revenue

Nearly one and a half million sole traders1 across the UK were unable to take any days as annual leave in the last 12 months, according to new research2 from Direct Line for Business.

In the survey, one in eight (16 per cent) SME decision makers said they had not taken a day off in the past year. This figure rose to 33 per cent for sole traders and 18 per cent among those with less than 10 employees, underlining the strain small business leaders are under.

With Britain in the midst of an unprecedented heat wave, it is a concern that the same number of small business leaders - 16 per cent - claim that they are not planning on taking any time off this summer due to their work commitments.

On average, SME decision makers take just 13 days' annual leave a year. Assuming they are able to take the eight bank holidays throughout the year as leave, this still amounts to an entire week less than the legal minimum of 28 days.

In addition to this, the average small business owner reports that they have to cancel or cut short three days of annual leave every year due to work commitments, meaning that nearly one in five of their days off every year have to be curtailed.

However, a quarter of the SME owners surveyed claimed that the number of days' holiday they were able to take every year had increased over the past five years, compared to 17 per cent who said that the number of days leave they could take had decreased.

The reasons behind this worrying trend for small business leaders not allowing themselves annual leave focuses around the inability to extricate themselves from their business. Over a quarter (26 per cent) of SME decision makers claim that their business would lose income if they were to go on holiday for too long, while a further 22 per cent admit that they find it hard to switch off from work while on holiday.

Less than one in five (17 per cent) of respondents believe that their business would struggle in their absence; however, only eight per cent of small business leaders claim that their business has experienced a critical issue whilst they have been on holiday, which will hopefully reassure owners that a business isn't doomed to fail without the proprietor in the short-term.

Table one: Holiday concerns amongst small business leaders

Issue Percentage of business owners who feel this way
My business would lose income if I were to go on holiday for too long 26%
I find it hard to “switch off” from work while I am on holiday 22%
I feel that my business would struggle in my absence when I go on holiday 17%
I often feel guilty taking days off 17%
I feel I am unable to spend as much time with my friends and family due to my work commitments 14%
Senior management in SMEs have a responsibility for their business and should not take extended periods of leave 13%
My business has experienced a critical issue whilst I have been on holiday 8%

Source: Direct Line for Business 2018

Furthermore, one in seven (14 per cent) small business leaders feel that they have more flexibility to take time off from work as a result of working at a SME compared to working at a larger company, emphasising the freedom of being your own boss. A further one in five say that while it's harder to take time off from work, it's worth it for the added flexibility they are allowed in other areas of their life.

Matt Boatwright, Head of Direct Line for Business, said: "Running a small business can be a stressful job, which is why it is even more important that proprietors afford themselves a holiday. Our research shows that there are millions of business owners who feel that they cannot leave their business to go on annual leave, but they should be reassured that of all the businesses surveyed, only a small percentage actually experience any business-critical issues while away.

"Ultimately, nothing is more important than the health of a business owner, so taking a holiday not only allows them to take some much-needed time off to relax but also prevents burnout and subsequent business issues further down the line. While their business may never be too far from their mind, whether they're in Margate or Marbella, there are steps they can take to alleviate worry, and taking out comprehensive small business insurance is one way of allowing you to put your feet up and take it easy."

For more information about Direct Line's Small Business Insurance visit the website: https://www.directlineforbusiness.co.uk/small-business-insurance

Notes to Editors

1 Analysis of BIS small business figures published in the Business Population Estimates for the UK and Regions 2017 dataset on 30th November 2017. An estimated 4.3 million sole traders operate in the UK, of which 33% did not take annual leave in the last 12 months. 33% of 4.3 million = 1.43 million

2 Consumer omnibus research completed amongst 505 UK SME decision makers between 28th June and 3rd July 2018

For further information please contact:

Citigate Dewe Rogerson
Samantha Stewart
Tel: 020 7282 2856
Email: samantha.stewart@citigatedewerogerson.com

Direct Line for Business
Jade Trimbee
PR Manager
Tel: 01372 839 452
Mobile: 07825 315 931
Email: jade.trimbee@directlinegroup.co.uk

Direct Line for Business

Launched in 2007 Direct Line for Business provides a range of insurance products for the small business sector direct by phone or online.

Direct Line for Business insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Direct Line for Business and U K Insurance Limited are both part of Direct Line Insurance Group plc.

Customers can find out more about Direct Line for Business products or get a quote by calling 0345 878 5603 or visiting www.directlineforbusiness.co.uk

Small Business Insurance Press Release

Added: 8 Aug 2018