In addition to economic aspects, the support of family and friends is also essential for small entrepreneurs to be able to perform well in what they set out to do. Erste Bank Hungary knows how difficult it is for managers of micro and small businesses, who often manage everything themselves. The Bank contributes to the success of its customers with simple, easy-to-use financial solutions and a digital ecosystem that supports the daily operation and development of small entrepreneurs.
For Hungarian small entrepreneurs, family and friendly relations with people are very important not only at the start but also later, during their operation. In addition to financial support and help in the workforce, self-confidence, maintaining motivation, and positive feedback from the entrepreneurs’ immediate environment are at least as important, according to the survey by Erste Bank Hungary.
“Small entrepreneurs often manage everything themselves, they don’t have a financial manager, an IT specialist, or a marketer. That’s why they need simple, easy-to-understand, and easy-to-use solutions like the George digital platform, on which they can not only switch between their personal and business finances without separate identification but also make it easier to search in previous transactions and make referrals to people they already work with they are connected,” – said Andrea Csajtai, Head of Micro Business at Erste Bank Hungary.
Erste Bank Hungary asked small entrepreneurs (sole entrepreneurs, managers of micro and small businesses) about the kind of help their family and friends gave them when starting up, and what kind of support they received from them during their operation. More than half of the respondents’ families played a major role in financing the costs associated with starting the business. For example, more than a third of them stated that the tools, machines, and equipment necessary for the startup were acquired with family support. Regarding financial support, small entrepreneurs rely more on the network of relatives and friends. Four-fifths of the respondents emphasized the role of family and friends in finding the customer base of their business, and connecting them with potential suppliers and partners.
Relatives and acquaintances are happy to contribute to the everyday life of small entrepreneurs with their work and expertise. More than 80% of the interviewed entrepreneurs believed that family members and friends who are close to them regularly help them with their work in maintaining the operation of the business. It can mean regular help in general, daily work processes, but also help in very specific expert services. A significant number of respondents, two-thirds, highlighted the sharing of business-related news and events on social media and the spread of a good reputation.
In addition to financial help, emotional support is at least as important for small entrepreneurs, which they can only get from those close to them. Three-quarters of the respondents indicated that to maintain the success of their businesses, they constantly need positive feedback from their immediate environment. This can be a reinforcement related to a specific decision situation, or just like continuous support in the belief in general future success. 75% of the small entrepreneurs also identified as a very important aspect that the family plays a critical role in overcoming difficulties, persevering with the business idea, and maintaining motivation. The contribution of the immediate environment to maintaining work-life balance is equally decisive. Three-quarters of the respondents also indicated that they would not have been able to bring their business idea to success without an understanding, supportive, and protective environment.
“Erste Bank Hungary knows how difficult it is for small entrepreneurs and how much the help of family and friends means. Many people get into business as a second or even third career because they believe in themselves and their market idea. The Erste’s mission is to support small entrepreneurs, those who believe in themselves and would like to start something new. Since last summer, the George digital platform has been used by retail customers and small businesses. George adapts to the needs of small entrepreneurs: on the modern, customizable interface, finances are more transparent, and expense and income statements are easy to review. Our Bank is constantly developing its financial platform, especially for small business customers, George regularly receives improvements. Erste Bank Hungary has also built a digital ecosystem to support entrepreneurs,” – drew attention to Andrea Csajtai.
Source: the Bank’s press release dated March 20, 2024
