SMEs spend twice the time on admin as growing their business

New research from American Express and Small Business Saturday UK reveals that Britain’s small business owners are spending almost twice as much time on administration as they are on growing their businesses, highlighting the time pressures facing busy entrepreneurs who are juggling multiple roles.

The annual SME Business Barometer research, which surveyed 1,000 owners of UK micro, small and medium-sized businesses found respondents estimated they spend an average of 11 hours per week on administrative or finance-related tasks – the equivalent of approximately six working days per month. In comparison, they report spending just over half that time (3.

6 days per month) on sales and business development activity.

The research shows entrepreneurs are struggling to find the time for growth-related activity: More than half (54%) say paperwork gets in the way of running their business Over a third (36%) identify their own lack of capacity as the single biggest barrier to growing their business One in five business owners (20%) say they work 60 hours or more a week.

Despite being stretched, respondents remain remarkably upbeat about the experience of leading a business; 85% describe it as the best professional development they have ever had, and two-thirds (65%) say it has improved their confidence and self-belief over the past year.

Faced with this time-squeeze, small business owners are increasingly looking to technology to reclaim time and focus on growth.

Many see Artificial Intelligence (AI) as a practical way to offload routine tasks – among those who want to delegate work, a third (33%) say they would use Generative AI tools for general administration, and almost a quarter (23%) for finance and accounting tasks. One fifth (21%) of small business owners say AI is like having another member of staff.

Small business owners are some of the most resilient people you’ll meet – but as they run their business through challenging operating conditions, this can mean even less time to focus on growth.

While AI will never replace the passion and expertise that entrepreneurs bring, it’s another example of how technology can help ambitious businesses make the most of every hour. Our focus at American Express is providing the support for small business owners to drive future success.

– Ruchi Sharma, Vice President, UK Commercial, American Express AI is also helping owners develop new professional capabilities; among those already using AI, two-fifths (41%) are using it for generating or editing content and nearly a third (29%) say they have used AI to learn new skills or access business advice.

It’s fantastic to see small business owners championing the benefits of entrepreneurship and the positive impact it can have on confidence and professional development. Running a small business also means wearing many different hats, with administrative tasks often taking valuable time away from growth.

That’s why AI presents such a significant opportunity to boost productivity, but we must ensure the UK’s 5. 7 million small business owners have the practical support they need to make the most of it.

– Michelle Ovens, Director, Small Business Saturday UK American Express is founder and principal support in the UK of Small Business Saturday – a grassroots non-commercial campaign, which takes place each year on the first weekend in December, celebrating small businesses and encouraging consumers to shop small.