Britain is on the cusp of a surge in startups, reveals research from Sage. Despite the recession and lacklustre trading conditions, 25 per cent of people aspire to launch a business.
That the UK has people prepared to strike out on their own and start businesses is fantastic, but more effort is needed to turn intention into action. Although 4.2 per cent of the population are actively trying to set up a business, only 3.4 per cent actually run one. Entrepreneurs are lacking access to finance and information on starting a business. With bad retail figures and problems obtaining loans from the bank, more than two thirds of would-be entrepreneurs will not act upon their ambitions in the next two years. At a time when budding entrepreneurs are critical to the UK’s fragile economic recovery, YouGov research suggests that high profile initiatives, such as Funding for Lending and Start Up Britain, are not doing enough. Over half citied that lack of finance was the main stumbling block. A fifth of respondents (21 per cent) were not able to secure the required funding. Whilst access to money is the biggest challenge for one in three 33-44 year-olds, it is only an issue for a fifth of over 55’s. The primary problem for 18-25 year-olds was simply not knowing where to start. The barriers to starting a business significantly change with age or experience. Older entrepreneurs were found to have a clear advantage with their knowledge of how to start a business. Strong regional differences were identified across the UK in why people wouldn’t launch a business. In Scotland (31 per cent) and Northern Ireland (33 per cent), a third of respondents cited job security as their biggest consideration, believing it safer to work for someone else. Risk aversion was less of a motivator in the North West, where respondents said that they didn’t want the stress associated with being their own boss. The study found that would-be entrepreneurs in Wales were the most pessimistic, with one in four believing their business could not survive in the current economic climate. Courageously, with money from their own pockets, increasing fear of starting businesses in this economic weather does not deter Britain from the start-up trend. Lee Perkins, managing director for Sage’s Small Business Division, commented: “The fact that so many would-be entrepreneurs are frozen and not actually launching their business is concerning. With any job, there will always be challenges, but if you are truly passionate about your idea and making it a reality, then all of these barriers can be overcome. “My message to anyone thinking about starting a business but doesn’t know where to start, is to have a hunt online; there are some fantastic resources and guides available for free. If you’re worried about access to finance, then take the time to invest in developing a thorough business plan. It’s true that practical and affordable loans for small businesses are not as readily available as they need to be, but our customers tell us that broadly speaking, lending has improved.” By Shané Schutte
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.