FEWER than half of Scotland’s small business owners believe they will be able to retire by state pension age, research suggests.
According to the Federation of Small Business, there were 346,180 small and medium enterprises (SMEs) operating in Scotland last year.
A report released today by retail bank Aldermore, which serves SMEs, found three quarters of entrepreneurs would like to leave their desks for good by the age of 65.
However, more than one third plan to work “well into their 70s” and one in ten believe they will “never” retire.
Most said they would have to keep earning a wage after the age of 65.
Carl D’Ammassa of Aldermore said: “It is understandable that in this current economic climate and with the UK’s ageing population, more SME leaders are working long after the state retirement age in order to make ends meet, with over one in ten also required to provide financial support to family members.”
Three in five SME leaders told researchers they like working, with more than one third thriving on the “daily challenges” of running a firm and a quarter stating that they remain “very passionate” about their companies.
This drive was found to be a key reason for planning a longer working life.
D’Ammassa commented: “Despite a significant number of business owners having to work throughout their later years, it is encouraging to see that so many of them are still relishing the opportunity to be their own boss and lead the way well after they are 65.
“SMEs are the backbone of the British economy and they need strong experience and leadership at the helm.
“However, for those small business leaders who are passing on the running of their business to others, we urge them to do this as auspiciously as possible to ensure the company continues to thrive in the future.”
Last month a report by St Andrews University suggested SMEs may be hardest hit after Brexit thanks to a drop in capital investment, lower growth and reduced access to external finance. Dr Ross Brown said “deep-seated uncertainty” is affecting organisations.
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