Partner Article

Entrepreneurs taking risks with their future

Over half of entrepreneurs do not have a pension, and one in ten has never invested in any kind of tax saving opportunity, according to research from accountancy firm Kingston Smith LLP. The study revealed that 39% of entrepreneurs expect to become millionaires when they exit their business, however, 16% of entrepreneurs expect to get nothing if they put their business up for sale. The findings also show that 33% of entrepreneurs are failing to generate significant long-term value from their business which will enable them to buy as house in the sun when they retire. As SMEs account for more than 99% of the total number of UK firms, representing more than half of the UK’s private sector turnover, these findings expose widespread risks. Andrew Shaw, head of private client group and partner at Kingston Smith LLP, said: “Entrepreneurs may feel that by running their own businesses they are taking hold of their own destiny, but their failure to plan adequately for the future could seriously undermine their prospects of profiting from their hard work. While it is tempting for entrepreneurs to let day-to-day business priorities come first or plough every penny back into the business in the belief that it will be their ‘pension’ which will take care of them in your old age, this is a high risk strategy.” The top aspiration for most enterprising individuals (56%) is to spend more time with their family, and over half of UK entrepreneurs seek to spend quality time abroad post exit. The research also reveals that the popular image of entrepreneurs as hard nosed business people is defunct, as 31% of entrepreneurs would like to invest unpaid time in charity work when they leave their business, compared with only 24% that would seek to start up another business.

This was posted in Bdaily's Members' News section by Ruth Mitchell .