More control over decision-making and freedom from employers are the principal motivators influencing entrepreneurs to start their own business, according to a survey by TNS/mrbi.
The nationwide survey of 303 owners of small and medium-sized enterprises conducted on behalf of O2 Ireland, found that 32 per cent of people running their own business most value having control over decision-making - by far the strongest motivating factor to emerge.
Not having to report to a boss or line manager was cited by 21 per cent of respondents as the thing they liked best in running their own enterprise. The survey also found that money was not a strong influencing factor in setting up a business.
Only 1 per cent of respondents mentioned better financial rewards as the reason they would like to run their own firm, rather than work for a major corporation.
Commenting on the findings, Billy D'Arcy, head of business and sales at O2 Ireland, said; "Ninety-seven per cent of all enterprises employ fewer than 50 people. There are approximately a quarter of a million small businesses in Ireland employing 777,000 people - or more than half of the total private sector workforce. Truly these entrepreneurs represent the backbone of the Irish economy."
The number of self-employed workers has doubled in the last 10 years and maintaining competitiveness and enterprise in small firms is vital to the Irish economy. A greater personal sense of achievement proved important, with one in 10 respondents claiming this would be the main reason for starting a business.
Surprisingly, those surveyed did not find personal independence a strong motivator although flexibility in work hours was highly favoured by respondents choosing to run their own business.
"Many owner-managers in small firms could make more money and work less hours if they worked for a big corporation but the desire to have more control over their career and their own destiny seems to be a major reason why they run an SME," commented Patricia Callan, director of the Small Firms' Association.
There was little difference in attitudes between male and female entrepreneurs, as similar factors were found to motivate both genders in business. The one area where views diverged was on the issue of reporting to a boss - a factor mentioned by 25 per cent of male respondents as influencing them to start their own business, compared to just 15 per cent of women.
Just 8 per cent of respondents mentioned better work/life balance as a reason they like running a business, indicating that self-employed people sacrifice other aspects of their lives to manage a heavy workload.
Getting people to develop their full business potential remains a challenge, Ms Callan said. "One of the real problems we have in Ireland is converting people who are self-employed into real entrepreneurs who grow their businesses rather than being just lifestyle-type people that are just happy pottering about by themselves. Maybe we should be targeting those people and encouraging them to grow."
