Among aspiring Brits starting their own business, the top reason for doing so is the desire to be their own boss, with other motivations including wanting to earn more money (33%) and wanting to pursue a passion project (31%).
As well as a desire for independence, there are a number of other factors motivating Brits to start their own businesses: 12% of those seriously considering starting a business are doing so out of concern that technological advances will make their job obsolete.
The data comes as 13% of UK business owners started their own companies after being made redundant from their previous jobs, reflecting the increasing economic pressures and impact of the growing digital economy.
Entrepreneurial ambitions are on the rise, but barriers to entry remain high: even among those who are not seriously planning to start a business, more than a third (35%) cite financial obstacles as their main problem, followed by lack of confidence (26%), lack of knowledge (27%) and lack of skills (20%).
Addressing some of these obstacles that stand in the way of the next generation of entrepreneurs could be key to ensuring the UK’s growth.
While most people want to be their own boss, the financial commitment they are prepared to make can be a limitation.
While 66% are prepared to invest their own money, the UK, along with France, has the lowest willingness to invest their own money, at just £5,000. The international average is more than double that at £12,501, highlighting Brits’ more conservative attitudes towards the future.
Thirty-two percent lack the capital needed to start their businesses, while 27% of respondents cited access to business loans and high interest rates as their main challenges, leading to calls for more government support.
There is international agreement on the need for better government intervention, suggesting that institutional problems are damaging entrepreneurship not just in the UK but internationally as well.
When asked what the top driver for increasing the number of entrepreneurs is, 28% internationally cited government initiatives or regulatory changes. In the UK, 19% of respondents cited a lower cost of living as the biggest change encouraging entrepreneurship.
While 25% of UK business owners started out working for their company full-time, a notable 39% started their business as a side hustle (third highest globally), and 19% eventually transformed it into a full-time venture.
16% are “grey entrepreneurs” who start their own businesses after retirement (i.e. after retirement age).
Resilience, persistence and learning are key: 54% of UK business owners have experienced setbacks and set up businesses that ultimately failed, with the average entrepreneur starting two businesses before finding success.
Similarly, support networks are a powerful driver: 31% of people who own their own business receive encouragement from people they know, and aspiring entrepreneurs credit friends and family (31%) with helping them start a business, as well as personal and community networks (19%).
Dean Evans, managing director, EMEA, commented: “It’s clear that there is a growing appetite for entrepreneurship in the UK, particularly among younger generations.”
“Addressing the financial and regulatory barriers is vital to unlocking a strong entrepreneurial ecosystem and unearthing the potential for the UK’s 10 million aspiring entrepreneurs to create positive change.”
“Improving access to financing, mitigating financial risks and implementing supportive government policies can help reduce barriers to entry for future business owners, thereby boosting economic growth, innovation and jobs for all.”
