Seven in ten SMEs would happily start up again: Survey

It seems start-ups are the envy of their larger counterparts, with a new report revealing more than 70% of SMEs would be happy to start up a business again, partly for the sense of pride.

The Telstra report is based on a survey of 1,003 SMEs. It shows 72% of business owners would be happy to start up a business again.

The survey found the most common reasons for setting up a small business are gaining independence, freedom and flexibility, and a sense of pride.

Meanwhile, 53% of the business owners surveyed said their business is their passion. According to Will Irving, group managing director of Telstra Business, the results are “heartening”.

“A healthy small and medium business sector is critical for Australia because it employs around five million Australians,” Irving said in a statement.

Dean McEvoy, co-founder of group buying site Spreets, which was sold to Yahoo!7 for $40 million last year, told StartupSmart he prefers to operate in the start-up space.

McEvoy made the comment after leaving Spreets last month.

“I’m a start-up guy and that’s where I want to play,” he said.

“I plan on doing something around start-ups. There are a few things I’ve got going on at the moment – investing [in] and mentoring start-ups.”

In addition to highlighting the appeal of starting a business, the Telstra survey found a majority of businesses are looking to make technology their biggest spend in the new financial year.

South Australian SMEs are the most likely to spend on technology, at 60.6%, although almost 50% of all businesses want to find better ways for technology to support their business in the new financial year.

The survey highlights other key areas of focus for the new financial year. For example, 33% will spend more on their business than last year, while 55% will spend the same.

A total of 53% of those businesses spending more will invest in technology, up from 45% in 2011.

Almost 80% will focus on new customers, 63% want to manage cashflow, 58% are interested in managing their costs better, and 41% would like to feel more in control of their business.

Irving said the findings show many in the small business sector are getting back to basics.

“Small and medium size businesses want to get back to the core of what they do best – and that is serve new and existing customers really well, and enable their staff to do so,” he said.