A survey of more than 8,000 people by the education and mentoring program, Entrepreneur Seminar, found that 80 per cent were dissatisfied with their jobs and 68 per cent were considering striking out on their own. The pandemic has many people to reassess their priorities and career objectives, with 58 per cent considering a change of skills and 55 per cent saying it had made them more likely to start a business.
Remarkably, 82 per cent believe there will be a recession, driven in part by the pandemic, despite most economists’ more optimistic predictions of a recovery and a surge in economic growth. Yet this has not dampened enthusiasm for going ahead with their own start-ups.
Entrepreneur Seminar surveyed 8,227 people, aged 25-55, with a 60/40 per cent male/female gender split. Most (78 per cent) were employed in SMEs and, of those, the majority were in middle management roles (60 per cent) with the remainder split between junior and entry level roles (27 per cent) and senior management (13 per cent).
The survey findings mirror HMRC data which suggests that the pandemic has triggered a greater interest in entrepreneurship. In March 2021, more new businesses were created than in any other month since records began in 1989. In 2020, 835,000 new businesses were started in the UK, a 14 per cent increase on the previous year, compared to a six per cent increase globally.
Entrepreneur Seminar found that the most common reason for wanting to start a business was to increase financial wealth (72 per cent) yet six out of ten new businesses fail in the first five years, often because of a lack of a capital. Eighty-five per cent of the would-be entrepreneurs surveyed had less than £10,000 to invest in a business, with 25 per cent of those able to invest less than £5,000.
One in three (32 per cent) said lack of funding was the biggest barrier to starting a business, but it was not the biggest stumbling block. One in two (49 per cent) cited a lack of business knowledge or business acumen as the main reason that would prevent them going it alone and one in ten (10 per cent) lacked confidence in their business idea.
However, the economic impact of the pandemic has led many of those surveyed to reassess their priorities, including those currently out of work or re-training (22 per cent), and the end of the government’s furlough program has affected many, with 74 per cent of those on furlough saying it had not gone far enough to support them.
Founded by renowned tech entrepreneur Martin Warner, Entrepreneur Seminar has educated and mentored more than 250,000 entrepreneurs since being set up more than 20 years ago.
“This is an unprecedented era of opportunity for entrepreneurs and the pandemic has provided many aspiring entrepreneurs with an opportunity to pause and reflect on their careers,” comments Martin Warner. “The world is open to new ideas, opportunities, and change, but jumping into entrepreneurship is a brave decision, regardless of the times.
“The most important thing for anyone starting their own business is to get the right advice and mentoring,” he adds. “It is heartening to see so many people looking to embark on the journey of entrepreneurship because small businesses are the backbone of the UK economy. But they will face challenges they have never encountered before and going alone requires not only courage, but a willingness to learn from others who have successfully completed that journey.”
