Small Business Matters

New businesses and 'silver startups' on the rise

Startup businesses enjoyed a resurgence in 2011, according to the annual Simply Business Start-up Index, which shows the first rise in annual growth since the start of the recession in 2008. 

The research finds:

• A 3% increase in UK startups in 2011
• A 19% increase in businesses started by retirement-age entrepreneurs
• Entrepreneurship no longer confined to London with strong regional growth reported

Jason Stockwood, CEO of Simply Business, commented: “Our results suggest that Government initiatives such as Start-up Britain have inspired would-be entrepreneurs to make their business dreams a reality. It’s now crucial that this support and encouragement continues into 2012 so these fledgling businesses can fulfil their potential.”

Here are the findings as an infographic:

Jason Stockwood added: “With ever increasing life expectancy and more flexibility around retirement, it’s interesting that those in the 60 plus age bracket are considering a second career as an entrepreneur. Starting a business can be hugely rewarding at any age and those with so much experience behind them are in a fantastic position to make it a success.

“It is also encouraging to see London is no longer monopolising entrepreneurism and other regions are giving the capital a run for its money. This trend will hopefully continue as aspiring business owners see success stories springing up around them.”

What do you think? Do you find the results encouraging? Are you surprised by any of the findings?

Students: Could you start a small business this summer?

 

If you’ve just finished term, you’re probably worried about little more than whether it’ll rain at Glastonbury (answer: probably). But with three months or more stretching ahead, have you considered how you’re going to get by? 

If the temping agencies don’t look promising or photocopying simply doesn’t appeal, maybe starting your own business does. It may sound daunting but it can be done, you’ll feel a real sense of achievement and it could open up a whole world of opportunity.

Another option for NEETs

While thousands of young people across the country have been celebrating their A level and GCSE results, recent statistics shows that regardless of the grades they get many young people still face a tough year ahead.

A recent article in the Telegraph reveals that one in ten people who fall into the category of NEET (Not in Education, Employment or Training) have A-levels or a degree. Since the economic downturn took hold, the number of young people classified as NEETs has increased dramatically. Research by the ippr and the Private Equity Foundation (PEF) reveals that the risk of becoming NEET has increased by over 40 per cent over the past two years. Unfortunately, while young people could once rely on getting good qualifications to secure a decent job, this isn’t the case anymore.

But it’s not all doom and gloom! Many, including Universities and Science Minister David Willetts, are starting to recognise that “there is more than one route into well-paid and fulfilling work". Clearly, one option for young people is to start their own business. With the right level of encouragement and support, young people can go on to achieve great success. It’s clearly worked for business tycoon Alan Sugar, who started his out at the tender age of 12 and went on to launch his own electronics company in his early 20’s, and is now one of the UK’s most successful businessmen.

Ensuring that young people are aware of all their options is vital to foster the next generation of UK entrepreneurs. There is already support out there for young people with organisations such as the Princes Trust offering advice and funding, as well as the Federation of Small Businesses and the Institute of Directors.

Small businesses collectively employ almost half the working population of the UK and contribute to 50.1 per cent of the UK turnover, so they are quite clearly the backbone of the British economy. With many young people looking for other options, even more encouragement and support is needed to give young people the necessary tools they need to succeed.

The undiscovered population

Recent figures from the Princes Trust Youth Index 2010 did not deliver the most optimistic news for today’s young unemployed Brits who are being dubbed as ‘the lost generation’.

According to the research, one in five young people, that’s 927,000 of 16-24 year olds, are currently out of work in the UK.

The Princes Trust fears that the long terms effects could be significant and that the UK risks losing out on the next generation of doctors, scientists and entrepreneurs if today’s young people don’t manage to get started on fulfilling their career ambitions soon.

Rather than looking at this group as the ‘lost generation’, they should instead be seen as the ‘undiscovered generation’, who should be fostered and encouraged to become the UK’s next cohort of young entrepreneurs and eventual business tycoons. Movements such as the Princes Trust Undiscovered campaign designed to help this group and the Make Your Mark campaign aimed at increasing entrepreneurial behaviour among young people are great ways of encouraging this.

Small business remains the back bone of the British economy, however more support is clearly needed to harness the younger generation of entrepreneurs who are hungry for opportunity and success.

Are British people ready to set up their own business?

Last month, Intuit asked YouGov to survey 2,000 British people to find out just how much interest they have in setting up their own business, and whether the recession has impacted their entrepreneurial dreams.

The result were some fascinating findings which confirmed that while people would like set up their own business in 2009, the recession has curbed enthusiasm.

• A third of Brits have or would like to set up their own business, but have put off their decision due to recession fears.

• Half think that now is a worse time to set up a business compared to this time last year.

• 40% believe that the recession has delayed their ambitions in setting up a business alone.

• 36% of people aged between 25-34 hope to set up on their own one day, compared to just 22% of 45-54 year olds.

On the whole, the results show that people are wary. The downturn has knocked confidence in the staying power of small businesses, and the results echo the awareness of the risk involved. It seems the older, wiser, more experienced folks who have struggled through previous recessions are more reluctant to take on the risk whereas the younger, less experienced budding entrepreneurs are still keen and rearing to go.

With increased support for small business more evident and a New Year just around the corner, who knows, attitudes may change in the near future.  We certainly hope small businesses keep fighting and get the support they so desperately need, especially since they are the back bone of the British economy and critical in pulling the UK out of the recession.

Time for a new wave of young entrepreneurs?

Last week 250,000 young people across the UK anxiously awaited their A level results, but with this year’s grades reaching record highs the competition for university places is tougher than ever. Even those that achieved high grades could miss out on a place. Young people are bearing the brunt of the recession, and the latest Government stats showing that one in six 18-24-year-olds are not in education, employment or training (aka NEETs). This difficult environment could provide the perfect opportunity to foster the next generation of UK entrepreneurs.

The path from school to business owner is actually surprisingly well trodden, with many of our most well-known entrepreneurs choosing the option of starting a business as another valuable way of building their future. Examples include Richard Branson, Steve Jobs, Peter Jones, Ingvar Kamprad (Founder of IKEA), Theo Paphitis, and Lord Alan Sugar. But clearly these few successes are the exceptions not the rule, so it is vital that more help and encouragement is provided to young people that are considering their options at this time.