A recent study revealed that annual leave taken across the UK dropped by 8% from 2022 to 2023. In light of this, small business credit card company Capital on Tap set out to discover how the figures compare for entrepreneurs.
They surveyed small business owners in the UK about perks such as holiday allowance, flexible working, sick pay and more to reveal which benefits are the most and least commonly used among entrepreneurs.
You can read the full research here: https://www.capitalontap.com/
Statutory holiday allowance is the most commonly used entrepreneur perk, reported by 61% of small business owners
The ability to take time off ranks as the most commonly used perk for small business owners, with a significant 61% reporting they can take the statutory holiday allowance (28 days including bank holidays) or even more time off.
However, this does mean that 39% of small business owners take less than the statutory allowance – with 21% listing money worries as the main reason for this.
Business owners working in travel and transport benefit from this the most, with a remarkable 100% reporting exceeding the statutory minimum for holidays. On the other hand, the financial services sector is worse off, with only a third (33%) of owners able to take standard allowance or better.
Rank | Perk | % of small business owners who have this perk |
1 | Statutory holiday (28 days of paid leave including bank holidays) or better | 61% |
2 | Flexibility to adjust working hours as needed | 58% |
3 | Full flexibility to remote work when desired | 51% |
4 | Ability to reinvest profits back into the business | 50% |
5 | Ability to work from any location | 48% |
Flexible working hours are the second most commonly used benefit, with 58% of small business owners reporting they can adjust their working hours as needed.
Interestingly, small business owners aged 18 to 24 are less likely to enjoy this perk, with only 27% saying they have the flexibility to adjust their working hours as needed (versus 69% of those aged 35 to 44).
Standard wage structure is the least commonly held benefit among small business owners, with just 20% using this
The least commonly used perk is a standard wage structure, with only 20% of small business owners reporting this benefit. This suggests that the flexibility to adjust income based on business performance, rather than a set wage, is more common among entrepreneurs.
Rank | Perk | % of small business owners who enjoy this perk |
1 | Standard wage structure (an hourly rate of a fixed wage) | 20% |
2 | Standard maternity leave (39 weeks off at 90% of earnings) or better | 23% |
3 | Statutory sick pay (£109.40 per week for up to 28 weeks) or better | 30% |
= 4 | Standard paternity leave (two weeks off at 90% of average weekly earnings) or better | 32% |
= 4 | Higher-than-expected wages | 32% |
5 | Hybrid working model (e.g. remote work two days per week) | 35% |
Just 23% of small business owners are able to take standard maternity leave or better, with most blaming a lack of funds
Despite being a standard benefit for regular employees, standard (or better than standard) maternity leave is the second least commonly used perk among small business owners, with just 23% being able to take this.
The most common reason for not being able to take standard maternity leave is a lack of finances, with 21% of women saying there isn’t enough money within their business to use this perk. A further one in six (17%) said it’s because they prioritise business growth over their personal life.
Paternity leave also ranks among the least common perks for business owners, with only 32% taking standard paternity leave, or exceeding paternity leave allowances.
35% of male business owners report being able to pay themselves statutory sick pay or better, compared to only 21% of women
When it comes to sick pay, there’s a significant gender gap, with male business owners (35%) more likely to report paying themselves statutory sick pay or better than women (21%).
This may be due to affordability, as 33% of women cited cost as a barrier, compared to only 14% of men. Male business owners were more likely to say they’re worried about being away from the business for too long in case they’re needed (17%).
Fay Sumner, Head of People, at Capital on Tap comments: “Statutory allowances, like sick pay and parental leave, exist for a reason: to provide a safety net and encourage breaks that can ultimately benefit your business. By using these allowances, you’ll be recharging your batteries and returning with renewed focus.
According to our survey, the most common reason for entrepreneurs not taking statutory allowances is concerns about money. There are various things you can do to better manage your business finances to allow for statutory benefits and peace of mind.
“For example, using a separate business credit card can be a big help with managing finances. Clear separation between business and personal expenses allows you to stay organised and feel more confident when taking time off, knowing your personal finances are protected.”
