Have you ever taken a look at the average figures for UK earners based on age group, gender and region? The statistics make for very interesting reading. Contrary to popular belief, most entrepreneurs and SME owners don’t start private businesses simply to line their own pockets – more often than not they’re just looking for a steady income like everyone else and have an idea and a spark that keeps them going. However, entrepreneurs work more hours (44 a week on average compared to 39 for full time workers) than almost anyone else, so this begs the question, are you really earning enough?
We’ve come a long way in terms of gender equality over the last few decades, but there’s still a significant divide. According to recent statistics, women in the UK can expect to earn significantly less than men – around 40% less in some instances. Of course, such discrepancies are highly dependent on age, location, position and other such variables, but that doesn’t change the fact that there is still a glaring gender divide in UK earnings. What about Britain’s female entrepreneurs? Shouldn’t they be in a position to help push the average up?
As you would expect, the amount of money you can look to earn at different times in your life varies drastically, with the lowest earners falling in the under 20 and over 75 age groups. Interestingly enough, the highest-earning age bracket for both men and women is for 45 to 49 year olds. This corresponds closely with the average age of Britain’s entrepreneurs – 45 to 54 years old. According to the most recent statistics, men in this age bracket can expect to pull in around £43,000 per year while the average woman earns a more modest £24,500 annually. What about you? How much does your SME net you every year?
The cost of living is markedly different in various areas of the UK, and the amount that people earn in those particular areas varies accordingly. London has the highest cost of living of anywhere in Britain, and London residents resultantly earn around 25-50% more than their peers in other parts of the UK, while North-East England is home to the lowest average earners. Depending on where your business operates, you may need to earn (not to mention pay your employees) a larger amount just to make ends meet. Does your income correspond with the statistics?
Britain’s average income statistics can be really quite eye-opening, particularly when you consider that only 30% of UK entrepreneurs say they are better off after starting their own business than when they were in full time employment. While money isn’t everything, it certainly goes a long way towards improving your quality of life, so we think Britain’s entrepreneurs should do their best to improve those statistics in future. If you’re looking to expand your business, reach more clients and earn yourself and your staff a higher income, make the most of our flexible invoice financing services and reap the benefits further down the line.
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