The SME growth figure represents a 22% increase over 2012, when 484,000 businesses made their debut. Now over 6 years later, the UK has seen the introduction of almost 3.5 million startups, across a range of sectors, from Olives at Tesco checkouts to suave Brixton based restaurants.
Because of the strong entrepreneurial spirit demonstrated by these numbers, digital product design company Studio Graphene decided to find out just how many people in the UK wanted to start their own business, and what was stopping them from doing so. It contracted a nationally representative independent survey of more than 2,000 UK-based adults to determine this answer.
More than 25% of the respondents said that they desired to start their own businesses.
The entrepreneurial drive was even stronger among millennials and parents with children aged 18 years and younger, with 45% and 41% respectively wanting to run their own businesses.
Of those responding to the survey, 13% said that they had an idea for a business they wanted to form over the last five years but dropped it when they learned that somebody else had already started a company using the same idea. In addition, 12% noted that they had seen an advertisement for a product that they had previously thought of creating.
The survey commissioned by Studio Graphene also revealed the reasons why some people did not act on their ambitions to start a business. About half of the respondents said that they did not have the prerequisite knowledge and skills to become entrepreneurs, and women were more likely to hold that belief than men.
In addition, 50% of the respondents said that they did not know how to procure the funds needed to start a business if they chose to do so, while 13% expressed a desire to launch a new tech-related product but did not know the process needed to develop the requisite technology.
Commenting on the survey Studio Graphene Founder and Director Ritam Gandhi said that it confirmed that the trend of entrepreneurs starting their own businesses would continue “for some time yet.”
He added: “This should be celebrated – startups are driving innovation in our day-to-day lives, while the UK’s vibrant startup community is also contributing to economic growth.”
For investors who want to help and support growth for entrepreneurs or diversify their investment portfolio, Enterprise Investment Partners offer both EIS and SEIS funds with portfolios of innovative early-stage companies. For further information, contact us at your convenience.