Generous business owners doing their bit for charity

We might have been too quick to suggest that the concept of ‘paying it forward’ had gone out of fashion in a previous blog. New research has emerged in the past week which paints small business owners as philanthropists who would donate even more money to charity, if they could afford it.

The YouGov survey in question, commissioned by wealth manager Kleinwort Hambros, reveals how nearly half (44%) of business owners give money to charity organisations every month. The average sum donated is an impressive £126, which works out to be £300 million a month.

These generous owners are keen to give more, but it is dependent on their business growing to enable the additional expenditure, revealed the survey of more than 1,000 entrepreneurs.

In terms of what it would take for owners to up their donation, here’s what the survey found:

· If their businesses grew by 5% in turnover, 14% of owners claim they would increase the amount of money they give to charity (this works out as 730,050 businesses). On average, these businesses would increase the amount by £73.30, which works out to be an additional £53 million a month.

· If their businesses grew by 10% in turnover, 15% of owners claim they would increase the amount of money they give to charity (this works out as 827,750 businesses). On average, these businesses would increase the amount on average by £100.21, which works out to be an additional £82 million a month.

· If their businesses grew by 15% in turnover, 15% of owners claim they would increase the amount of money they give to charity (this works out as 833,250 businesses). On average, these businesses would increase the amount on average by £205.38, which works out to be an additional £171 million a month.

If you thought that generosity might be something that comes with age, the findings refute that assumption. Just two in five (39%) small business owners aged under 35 say they would not increase the amount they give to charity if their businesses grew by 5%.

Meanwhile, two thirds (65%) of millennial entrepreneurs give between £1 and £20 per month to charity compared to 41% of those over 55.

That said, older entrepreneurs tend to give more money to charity – 2% of over 55s and 3% of those aged between 45 and 54 make donations of more than £1,000 a month.

As much as anything else, the research is a further reason why we should give small business owners the support they need to grow. Not only will the economy benefit, so will charity organisations.