Small business owners want to take key decisions themselves and reject the idea of having a board of directors or non-executive positions, according to academic research published by ACCA.

The research carried out by Colin Coulson-Thomas, professor of direction and leadership at the University of Lincoln, discovered that very few small companies even had working boards and the handful of non-executive directors that did exist were usually relatives.

Those who acknowledged that additional directors could help fill existing skills gaps did not believe they would be able to afford them, the study added.

“Directors in many cases only tended to act as directors when required to do so, at AGM time, or when approving the audited accounts,” said Coulson-Thomas. “But in the absence of independently-minded non-executive directors, whose duty is to the company rather than particular individuals, many found it difficult to step up from discussion of short-term operational issues to provide strategic direction.

“What was most striking – and sad – about my findings was that virtually no entrepreneurs were able to sum up succinctly what was special about their business,” he added. “Some of them had real potential, which independent advice in the shape of new directors could help them realise, but they could not see it.”

The research also suggested that small business owners were more concerned with getting through the next couple of years than formulating a strategy for the business. Company boards and non-executive directorships were seen as an issue for larger companies only.

“This valuable research shows that small firms are missing out on the experience, objectivity, fresh thinking and skills that effective boards can provide,” said Paul Moxey, ACCA head of corporate governance and risk management.

“We need to address the reasons entrepreneurs are shying away from using other directors as they can provide a cost-effective way of developing these businesses beyond the often-limited horizons of the founders.”