News

May 21, 2010

Average business lasts longer than marriage, says survey

The average firm lasts longer than most marriages – that is the finding of new research from accountancy firm RSM Tenon which revealed that businesses survive for an average of 12.5 years, while the typical matrimonial span is just 11.

According to Tenon, the principles of maintaining a good marriage and a successful business are similar. “One advantage businesses have is being able to choose close colleagues and partners,” said RSM Tenon’s head of recovery, Carl Jackson.

“While some spouses struggle to build a relationship with their in-laws, business owners are able to select the people they do business with,” he added. “However, the principle of maintaining a good marriage and a successful business are similar, with communication a vital ingredient in both.

“Negotiation, trust, reliability, open communication and honesty are traits needed by both business owners and married couples,” said Jackson. “But too much emotion could cloud judgment, which could partly explain the better success enjoyed by entrepreneurs.”

The National Federation of Enterprise Agencies (NFEA) chief executive, George Derbyshire, said the comparison between marriage and running a business was “apt”, but added business owners should not feel that their chances of long-term success were limited.

“In business, and to a certain degree in marriage, planning and research are perhaps the most vital tools,” he said. “If an entrepreneur does his homework when starting up, there’s no reason why the business can’t survive for many years.

“It’s also important to note that help is available,” added Derbyshire. “Just like talking relationship problems through with friends and family, businesses should take advantage of the support, training and mentoring schemes that are available. Firms are 20 per cent more likely to survive and grow if they took business advice.”

The RSM Tenon poll drew its figures from a survey of 5,000 UK companies which went into liquidation or administration early this year. Marriage data was provided by the Office for National Statistics.