Over 90% (92.8%) of those questioned in the survey said that learning from their own experiences was the most effective way to develop their business skills with learning from other business owners also regarded as beneficial by almost half (48.9%).  Methods such as the use of business coaches or advisers were preferred by only 12% of respondents.  Nearly 35% cited managing cash flow and finances as their biggest challenge while 29.2% cited winning new customers.  These were followed by creating business opportunities at 17.6%, solving business problems at 16.7% and business networking and communication at 15%.

Support for informal skills development activity was confirmed with more than two thirds (63.5%) saying that informal learning was more important than formal development techniques, such as attending training courses or e-learning packages.  Over half of those questioned were not expecting to invest time or money in their own development over the next twelve months.  Those who were intending to invest tended to be younger businesses, larger businesses or among people with high qualifications.

According to SFEDI, two thirds of the 2,601 business owners questioned had no prior experience of running a business or managing a business of any size, making their need for skills development particularly vital.

SFEDI, which sets standards for individuals and organisations working with small businesses, is calling on Government to ensure that start ups and small business owners receive their fair share of public funding and that they are given tailored and effective support in the format they want it, to enable them to build the know-how and support network to grow their business.

Tony Robinson OBE, founder and Executive Chairman of SFEDI, commented:  “One in seven of the UK workforce is self employed or running their own business.  They are a key driver of the economy with 97% of all businesses having fewer than ten employees yet receive less than 10% of all Government funding from departments responsible for employment, skills and enterprise.

 “Small business owners learn best from their own experiences and those of their peers and there are many examples of this approach being put into practice across the UK.  They include the Business League, a successful membership organisation in the South West; The Entrepreneurial Exchange in Glasgow and the Six Squared Learning Set in Sheffield.”

Commenting on the launch of the Government’s Enterprise Strategy, Tony Robinson continued:  “After a muddled four years, we welcome the Enterprise Strategy and recognise that many of our comments have been taken on board.

 “But too much responsibility for the actual implementation of business support still rests with Government agencies.  This was an ideal opportunity to position Business Link as a useful signposting service and portal but to enable the actual delivery of support to be carried out by those organisations and individuals whom entrepreneurs and small businesses really trust.

“Government must play a key role in enabling community-based business support services, small business membership organisations, chambers and others to provide the help that start up and small businesses so desperately need in tackling the challenges they face.”