One in three small business owners work extra hours to offset staffing shortages
Nearly one in three small- and medium-sized enterprise (SME) entrepreneurs work extra hours to cover staff shortages. This information comes from a survey of more than five hundred companies, FD reports.
The research was conducted by Motivaction on behalf of New10, a subsidiary of ABN AMRO focused on SME financing.
According to Arnoud van Zelderen, CEO of New10, it is understandable that business owners step in themselves, but they increasingly end up working on daily operations rather than focusing on strategy and growth.
According to the study, entrepreneurs typically fill staffing gaps themselves as a reflex. This limits their ability to focus on business growth, as two-thirds already work around 40–50 hours per week. According to van Zelderen: “An entrepreneur simply doesn’t work nine to five.”
Even though the entrepreneurs work hard to address the labor shortage, “it is not easy for them,” van Zelderen said.
Erik Stam, professor of strategy, organization, and entrepreneurship at Utrecht University (UU), told FD that entrepreneurs stepping in can hurt SME productivity. He emphasizes a more strategic approach. “It is logical to put out fires, but for the business, it is not always wise.” He expects that investing in technology, AI, or other differentiating strategies will yield much higher long-term returns.
According to Stam, many SMEs compete with large corporations. These companies often attract employees more easily by offering higher salaries or more training opportunities.
