New data from the global small business platform, Xero, has revealed that millennial business owners have lost faith in their advisors, according to a new survey.
The survey revealed that 38% of small business owners were currently under 35. Nearly half (44%) of all accounting and booking services provided to the small business market last year were provided to this age under 35 group.
However, Xero research also revealed that millennial business owners were unsatisfied with their existing accountants and bookkeepers, with over 39% of owners actively looking to replace their advisor in the coming year.
Accountants and bookkeepers were given an average Net Promoter Score (NPS) of -3.0, yet among millennial business owners, this score fell to -8.8.
Participants said that much of this dissatisfaction was a result of “lack of attention and the advice they receive”.’ In fact, 23% of young business owners said that they rarely, if ever, received ideas from their advisor. Only 6.5% of advisors in the UK regularly ask their clients for feedback.
Rachael Powell, chief customer officer at Xero, said: “Millennial small business owners aren’t the future of the UK economy – they are operating it now. Advisors are undoubtedly the unsung heroes of small businesses across the UK but our research shows there are areas they can improve their client relationships, especially for younger small business owners.
“This generation has higher expectations than previous generations, and they’re looking for advisors to work collaboratively with them and provide insights behind the numbers and make recommendations that have a positive impact on their business.”
She added: “Accountants and bookkeepers who keep in regular contact with their customers are likely to have happier clients and greater opportunities to grow their own business.”
Data for the survey was collected from over 1500 small businesses throughout the UK.