Business people face money problems and longer hours

17/11/2009

Recession-hit business people are struggling to keep their heads above water in the downturn and are working longer and longer hours.

A report from Abbey and Alliance & Leicester has shown that one in six people who own their own firms is working 65 hours per week, despite the fact that the European Working Time Directive only permits 47 hours per week.

One in three business people also said that they are now working more than they did a year ago.

The change in working hours coincides with the economic downturn that has put the UK in recession since 2008.

Business owners, who often use their own private funds to get started, have faced money problems including lower sales volumes and difficulties in securing credit from banks as a consequence.

Commenting on the report, EuroDebt director Kevin Still said: "We have seen a rise in the number of small business owners using their personal credit facilities, like a credit card, to fund their business often with crippling effects on the business and their personal finances. A number have personal guarantees with their bank, potentially putting their home at risk.

"The self-employed can be badly affected and many don't make a clear distinction between what is going through the business and what is household expenditure. It is very easy, for example, for a taxi driver to pay for his diesel on a credit card and not include this in their business expenditure, whilst using the cash from fares to make personal purchases."

He added: "EuroDebt works with its business recovery and insolvency specialists to look at these types of cases, in some instances to look at business recovery and a personal debt management solution. Many businesses are viable with a little external help."

The UK economy is predicted to contract by over four per cent during 2009.

Tags; Current UK Economy, Young Family Finances, Recent Graduate Debt,

Regional Debt Advice; Debt Advice Leicester,

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