Empowering UK Small Business Leaders: Overcoming Underperformance and Building a Legacy

Small businesses are the backbone of the UK economy, making up 98% of the 2.75 million companies in the country. These enterprises, defined as having fewer than 50 employees, play a crucial role in driving economic growth and innovation. However, a staggering 80% of these small businesses are underperforming due to a lack of capability. Understanding and addressing the root causes of this underperformance is vital for the survival and prosperity of small businesses in the UK.

The Underperformance Challenge

The statistics paint a concerning picture:

• 15% of small business leaders did not know what productivity was.
• 29% did not know how to measure productivity.
• 37% did not have the time to measure productivity.

These figures highlight a significant knowledge gap and a lack of time management among small business leaders. Moreover, 80% of small businesses only last one generation; they are not sold or passed on, indicating a failure to create sustainable and enduring enterprises.

The Root Causes

Small businesses often lack capability because they are heavily dependent on their leaders. These leaders are typically self-starters, self-taught, and limited by their own experiences. They tend to work in the job rather than on the job, focusing on short-term delivery rather than long-term growth. Many small business leaders also believe they cannot afford world-class training, and previous training experiences have often been disappointing.

A survey of 150 small business leaders in Norfolk revealed common struggles:

• A lack of self-belief.
• Little understanding of how to manage people’s behaviour.
• Poor understanding of their purpose and motivation.
• Minimal effort in engaging their teams to achieve more.
• A lack of accountability.
• No strategic plan.
• Neglecting their own well-being.

These findings were echoed in the 2018 Norfolk Charter for small businesses, which reinforced the need for leaders’ self-development, training, and community sharing. Being a leader can indeed be a lonely place, but it doesn’t have to be.

The Path to Improvement

Despite the challenges, small business leaders can self-develop and achieve more. This is where MyBigSky comes in, as we help small business leaders define what success looks like for them and support them in reaching their full potential. Our Year 1 program, “Problems behind the Problems,” focuses on tackling fundamental issues, such as a lack of self-belief, providing leaders with the tools and confidence to drive their businesses forward.

Questions for Reflection

As a small business leader, reflecting on your journey and challenges is crucial for growth. Consider the following questions:

• What are the issues that you currently face as a leader?
• How much time do you invest in developing yourself as a leader? Why?
• What is the best training you have ever received, and why?
• What have you done to build capability in your team?

By addressing these questions, you can start to identify areas for improvement and take actionable steps towards enhancing your leadership skills and business performance.

Conclusion

Small businesses are the lifeblood of our economy, yet they often struggle due to underperformance and a lack of sustainable practices. By investing in self-development and seeking out supportive programs, small business leaders can overcome these challenges, build lasting legacies, and significantly contribute to the UK’s economic success. Remember, the journey to improvement starts with acknowledging the problems and committing to change. Let’s work together to ensure that small businesses not only survive but thrive for generations to come.