Despite the common perception of company formation owners as being on huge salaries, having expensive cars and extravagant lifestyles, a recent report reveals that this couldn’t be further from the truth.
HSBC business asked of two thousand small business and company formation owners what they wanted most from running their own company and the results were extremely surprising.
A large salary came way down in their list of priorities behind increased flexibility, making money from something they enjoy and being their own boss.
The report also found that over sixty per cent of all the small business owners who took part in the survey said they have either not had a pay rise since the recession began or have actually taken a pay cut. Just fewer than thirty per cent said they would be happy to take a salary of just fifteen thousand pounds, while fifty per cent said they take up to thirty thousand pounds.
Sarah Cooper, enterprise manager at HSBC Business, comments: “Entrepreneurs have always been motivated by a variety of things and from my experience a large salary is not one of them. For most people company formation means control over their own future which is a primary motivating factor.”
Company formation figures have increased during the last quarter.