New research by The Recruit Venture Group has uncovered the truths behind being a business owner including:
· A third of business owners never planned on starting their own company
· 1 in 10 side business entrepreneurs faced challenges with mental health, including self-confidence and anxiety whilst starting up
· 12% of business owners wish they’d started their business sooner
· Only 1% of business owners regret setting up
A survey of 1,500 UK business owners and employees has revealed that a third of business owners never planned on starting their own company, but 75% of them now believe they are in their dream job, compared to only 13% of employees being in theirs.
A third of business owners have revealed that they started up their company in a completely different industry to their initial career choice, proving that there is no limit to start-ups.
Interestingly, 25-34 years old is the most common age business owners start up but looking back 12% of business owners wish they’d started their business sooner.
The number one reason that people take the leap to start their company is due to always wanting to do it (50%) but also want greater flexibility in their work life (26%), more stats are revealed below:
Many people also decided to leave their employment and start their own company due to health reasons or being bullied at work.
The top 10 most popular cities in the UK for people to have their own business:
Some of the top challenges that entrepreneurs face when starting up include raising capital-funding, lack of personal income and finding customers for their brand. Others have revealed that the long hours, balancing work and family life as well as knowledge of the set-up process are all difficult to deal with during the start of their new business venture.
1 in 10 side business entrepreneurs also faced challenges with mental health,including self-confidence and anxiety whilst starting up and 16% admit to feeling lonely during the start-up phase.
But even due to the challenges that business owners have faced, looking back only 1% of company owners regret their decision and 12% of business owners wish they’d started their business sooner.
Initially many people funded their new company through bank loans (34%), own funds (33%) and friends and family (23%) but many didn’t need funding at all. The top 10 industries where people started their own company without any funding at all include:
2. Public services and administration
3. Transport and logistics
4. Media and internet
5. Social care
6. Business, consulting and management
7. Charity and voluntary work
8. Hospitality and events management
10. Publishing and journalism
Regarding the future of the business, the things that business owners are most worried about is cash flow (18%), retaining customers (10%) but also the uncertainty around Brexit (6%).
There are many perks for business owners, including more freedom, not having to report into anyone else and doing something they truly enjoy.
Looking back, the things that business owners would go back and do differently would be:
1. Starting with more money
2. Have a better business plan
3. Research the industry more
4. Check the spend
5. Have more confidence
Paul Mizen, Managing Director at Recruit Venture discusses these findings:
“It is clear, that start-up companies are on the rise in the UK and the benefits are worth it for many business owners. The fact that only 1% of business owners regret their decision to pursue their dream on their own is a clear indicator that if you are wanting to take the plunge, you should indeed consider doing it within the next five years. Even though there is a lot of uncertainty in Britain at the moment, I think that the future of small businesses is looking quite promising.
Many entrepreneurs have begun their own company in a career that was completely different to their initial career path and this is something to be inspired by for any future business person.”