More than half a million businesses were created in the UK last year (515,000 in 2013, up 8.9 per cent from 473,000 in 2012), with the proportion of first-time directors rising by 12.6 per cent.
The positive story for start-ups and the UK economy doesn’t stop there, with business survival rates also on the up year-on-year, from 76 per cent in 2009, to 87 per cent in 2011.
This has led to the rise of the debut director.
And research has discovered that these first-time directors have less start-up capital and come from a lower affluence band when comparing these individuals’ incomes, property values and net worth to national averages.
But despite this, debut directors now have a 84 per cent compared to 87 per cent chance of survival due to their savvy approach to business and credit management.
Max Firth, managing director for Experian Business Information Services, said: “These figures suggest a shift in how we should view the average UK entrepreneur. It’s not all high-tech startups and Dragons’ Den-style big ideas. An increasing proportion of new business directors are making the most of the lower start-up entry levels; grabbing a mobile phone, a laptop and a flexible workplace, and creating their own jobs and their own opportunities.
“While this increasing population of debut directors should be celebrated, there’s much they can do to improve their chances of success. Some may still lack the experience, capital and contacts needed to survive those first few tricky years.
“So it’s crucial for new entrepreneurs to be aware of how others may see their business and the impact this could have on their access to essential services and potential funding opportunities.”
By Shané Schutte
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