Here’s a myth buster.
Startups don’t work any longer, or even as harder, than other businesses. And, what’s more, they no longer have to make do with less pay.
That’s the finding of a survey by MYOB and reported in the accounting software provider’s Business Monitor.
“Compared to more established SMEs, start-ups worked less hours for better financial reward last year and are more confident about this year’s revenue performance,” the report said.
The MYOB survey, conducted by Colmar Brunton, compared “attitudes, results, intentions and expectations” of Australian businesses less than two years old with that of their older peers.
Next generation is smarter
“Start-ups represent the next generation of employers, suppliers, innovators and investors in economic growth and development,” said James Scollay, MYOB’s general manager, Business Division. “And even though not every start-up succeeds, each plays a role in enriching the business environment, creating demand, testing ideas and supporting the livelihoods of many.”
Here are some major findings of the MYOB survey:
- Start-ups’ mean working week was 39.7 hours, compared to 40.6 hours for SMEs overall. But 50% work more than 40 hours a week in their business, 37% work between 40 and 60 hours per week, and 13% work more than 60 hours per week.
- In the year to February, start-up businesses reported stronger revenue performance than SMEs on the whole. More than one-third (36%) saw revenue gains, compared to 18% for all SMEs.
- Start-up business owners and managers had far more confident expectations around financial performance for 2013 than their more established counterparts. A full 42% expected revenue to increase, compared with 30% of SMEs on average.
- Attracting new customers was cited by start-up business operators as their biggest challenge over the year. Other challenges include cash flow and fuel prices.
- Customer retention and acquisition strategies topped the agenda of start-up businesses. Increasing the number or variety of products or services sold was also a key focus, coming in third.