Interviews

Fear of failure prevents would-be entrepreneurs from developing business

2 min read

26 February 2015

Former deputy editor

New research from the UK government has revealed that 39 per cent of of would-be entrepreneurs across the country consider starting a business each day, but fear is a big problem.

In fact, 78 per cent of those who have business idea are being held back because they’re afraid they’re going to fail. Real Business interviewed Piers Linney of Dragons’ Den earlier in February and he explained that failure is okay as long as entrepreneurs don’t consistently blow up and take people down with them, believing that the UK should be more welcoming of stories that have tried and failed.

The study has been conducted in alignment with the Business is Great campaign and discovered other barriers for not following business ideas included: 

  • Lack of a mentor – 70 per cent
  • Finance – 69 per cent
  • Time pressures – 62 per cent
  • Inspiration – 60 per cent
  • Advice – 60 per cent
  • Premises concerns – 50 per cent
  • Lack of family support – 37 per cent

Vince Cable, business secretary, said: “The UK is Europe’s leading entrepreneurial nation and the government is backing small firms as part of our industrial strategy to create long term jobs and grow the economy. Large companies also have a vital role to play in offering support and sharing their expertise with smaller companies wanting to grow.

“Over two million new businesses have launched since 2010 and I want to encourage all would-be entrepreneurs to visit the Great Business website and benefit from the wealth of advice and support that’s out there. I look forward to seeing more inspirational small businesses develop their dreams into a reality.”

Read more on business idea development:

Youngsters are seemingly the most eager to get started operating their own company, as 52 per cent said they thought about launching a business most days, falling to 24 per cent for those aged 55+.

Some 41 per cent of respondents even said starting a business would be a greater achievement than raising a family. Among the motivations to get started, 98 per cent cited flexibility, 95 per cent said lack of boss, 92 per cent said freedom, 90 per cent said a desire to feel successful and 83 per cent said money. 

Image via Shutterstock.