Personal savings have helped entrepreneurs survive the credit crunch, coining the phrase ‘piggybank recession’, new research reveals.
The second ‘DNA of an Entrepreneur’ study by Hiscox insurance has found that entrepreneurs pumped £16 billion into their businesses in an effort to survive the recession. While one in three of those polled slashed their own salary to increase cash-flow.
‘SME bosses have been the unsung heroes of the recession. They have made enormous sacrifices and taken significant personal and financial risks to pull their businesses through the last two years,’ explained Alan Thomas, small business expert at Hiscox.
‘Their positive outlook for the year ahead is testament to the resilience of UK entrepreneurs and with 25% planning to expand in 2010, they are doing their bit to help lead the UK’s recovery.’
The study also revealed that one third of entrepreneurs increased their working hours by, on average, 12.5 hours a week, with one in ten working over 50 hours a week to keep their businesses afloat.
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