These bosses are the poor relations

However, the survey also shows that over 90 per cent of small business employees are earning more than the minimum wage rate of £4.20 per hour.

Although legislation ensures that adult workers are paid at least £4.20 per hour, there is no safeguard to ensure that business owners themselves are paid this much.

On average, 20 per cent of small business owners pay themselves less than the minimum wage and the figure rises to 38 per cent for firms with an annual turnover of less than £50,000 per year.

The majority of those employed on the minimum wage rate of £4.20 are those working in the retail or hotel and restaurant sectors, perhaps due to the high number of young people or students typically employed in these positions.

Although the likelihood of a small business owner working for less than the minimum wage is clearly related to the turnover of the firm, it is also influenced by other factors, including gender and sector.

A third of female business owners in the survey estimate that they earn less than the minimum wage, compared with less than one fifth of male owners.

The lower paid small business owners also seem to be prevalent in certain sectors, particularly hotels and restaurants, as nearly half admit that they are earning less than £4.20 per hour.

Paul Watters, NatWest's area business manager for Wiltshire, said: "This research tends to show that despite initial concerns about the introduction of a minimum wage, small businesses seem to have embraced it. Small businesses are the lifeblood of the UK economy and it is not surprising to see them adapting and embracing changes in legislation which benefit their employees."

Other key findings from the survey show that:

Nearly two-thirds of owners report that the minimum wage has had no effect on their business, with nearly half thinking that it was a good idea.

Where the minimum wage has caused pay increases, small firms have more often accepted reduced profits than increased prices or cut employment.