The “can-do” attitude that makes small business owners successful, could also be their Achilles’ heel, according to a Hiscox survey.
Our research found that despite 64% saying that legal issues should be handled by professionals, only 26% of small businesses actually employ full or part-time legal and/or accounting help.
Passion drives entrepreneurs, pressure is part of the package
36% of the surveyed entrepreneurs reported that their passion gets them through tough times, while 40% believe pressure is what they signed up for. However, passion could be clouding entrepreneurs’ perceptions of when they need to employ outside help for specific tasks. A full 76% of small business owners surveyed said that either their skills gap is not a threat or that they are able to plug the gap with professional expertise when needed.
Knowledge gaps pose problems
Small business owners admit that they lack knowledge in key areas, including legal (56%), taxes (36%), IT (34%) and insurance (31%). Despite the potential hazards of legal and financial errors, more business owners employ a full-time communications officer than an accountant or in-house legal counsel (8% and 5%, respectively). Only 7% of small business owners would opt for an accountant or lawyer if they could make another full-time hire.
For full survey results, click here.
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2 Comments
For me it’s a matter of generating a profit at the end of the day. I’ll pay a CPA for the fed taxes, simply because of the red tape. My business doesn’t generate enough money to support me, a lawyer, a book keeper, and an inventory specialist. There are only so many people who can make a living from my work, and right now it’s a struggle for that one.
Thanks for the comment Steven. As an entrepreneur your forced to make decisions within your means and aligned with your business goals. Like you said, there’s a lot of red-tape when it comes to taxes and hiring a CPA whose up to date on the latest tax laws is a very smart way to go. The last thing you need to worry about as a small business owner is a tax audit.
What area would you hire in if you could add an additional employee?