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June 05, 2014

"No such thing as luck in business", say SMEs

New research by Sage One has found that 72% of small business owners do not believe in luck in business. However, one in four entrepreneurs has said that luck does have an influence on success.

The study of more than 1,000 UK small business owners showed that the majority believe they are in control of their firm's destiny – however, 28% believe luck plays a part. And one in every 25 businesses even has a lucky mascot.

No such thing as luck in businessA combination of hard graft, experience and good business practice are seen as the main drivers of success, according to the research. Good customer service (80%), a solid business plan (55%) and sound knowledge of the business' finances and suppliers (54%) were cited as the most influential contributors to success.

However, for those companies that had performed poorly, the owners cited bad luck as one of the top three contributing factors – after failing to create enough networking opportunities and being unable to react to changing situations. Conversely, business owners who judged their firms to have performed well did not list good luck as one of the top five factors.

Overall, the survey found that the UK's small business landscape enjoyed a positive year, with 74% of companies reporting good business performance and 77% making a profit.

Claire Carter, head of Sage One, said: "There will always be a role for luck in business – that chance meeting or new product that comes out of a mistake, for example. But the people getting ahead are those that load the dice in their favour. Business success is built upon sound planning, understanding, and agility. The days of the Del Boy wheeler dealer are numbered."

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