Entrepreneurs have spent up to £16 billion of their personal savings keeping their new businesses afloat during the recession, according to new research.
Figures from insurance firm Hiscox, included in its DNA of an Entrepreneur study, revealed 20 per cent of small and medium-sized enterprise bosses have spent an average of £17,030 of their own money on the business.
Over one in three (34 per cent) have cut their salary in order to improve cashflow, while 33 per cent increased their working hours by an average of 12.5 hours per week.
Small business expert at Hiscox Alan Thomas noted owners of small businesses have "made enormous sacrifices" during the recession.
"Their positive outlook for the year ahead is testament to the resilience of UK entrepreneurs and with 25 per cent planning to expand in 2010, they are doing their bit to help lead the UK's recovery," he remarked.
In addition, the report found nearly two in five respondents (38 per cent) have suffered from stress as a result of the pressures of working through the recession, while 13 per cent have seen their marriages suffer and 24 per cent endured sleepless nights.
Hiscox said respondents saw securing relationships with existing clients and winning new business deals as two key methods of survival in the downturn.
Last week, trade insolvency body R3 said more than a quarter of small UK firms think it is likely they will become insolvent should the risk of a double-dip recession become a reality.
Enterprises in the hotel and catering sector were least confident, with nearly half (47 per cent) stating they would be unable to continue operating if the UK economy slipped back into recession.
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