Small business owners lead by example

Small business owners have become more resourceful during the downturn, taking such measures as freezing their own pay, a report from Santander Business banking has shown.

The report showed that a staggering 59% of small business owners have chosen to freeze their own pay, whilst only 33% have forced similar conditions on their staff. A further 28% of bosses even took the decision to cut their own pay.

Another strategy employed by firms included reviewing and renegotiating deals with their suppliers to cuts operation costs. As a result of all of employing measures such as these, only 1 in 20 firms (5%) out of those interviewed have had to make job cuts.

Paula Ickinger, the Head of Business Banking at Santander, commented that it is “a testament to the commitment of business owners that they have, where possible, protected their staff”.

Despite bosses successfully boosting funds by making changes to pay conditions and supplier terms, 14% have still had to increase their bank borrowing during the recession. Ms Ickinger said that banks can play a crucial role in supporting small companies “by focusing on customer relationships and providing support for well run and viable businesses.”