Why Briton's Dreams of Starting Their Own Business Don't Make It Off the Starting Block
171/0310 November 2003
SIXTY PER CENT OF BRITS HAVE CONSIDERED BEING THEIR OWN BOSS
Sixty per cent of Britain's workers have harboured dreams of starting their own business, but fears about lack of security, increased responsibility and uncertainty prevent most would-be entrepreneurs from making the move, according to new research by Lloyds TSB Business.
A fifth of people (21 per cent) would like to start their own business because they are simply fed up of working for others and want to be their own boss. This was a particularly strong motive for men - a quarter of whom said that this had led them to consider starting up on their own. The second most popular reason for considering business ownership was the desire to turn a hobby or interest into a successful business (18 per cent).
An overwhelming three quarters (75 per cent) said, however, that they had not realised their dreams because ultimately they liked the security of working for somebody else, owning their own business would be too much responsibility or that they wouldn't like the uncertainty.
David Singleton, managing director, Lloyds TSB Business, says: "There is no doubt about the British appetite for business ownership, but sadly this desire fades largely through fear of the unknown. Breaking down the barriers that stop businesses from starting-up is clearly a priority."
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SIXTY PER CENT OF BRITS HAVE CONSIDERED BEING THEIR OWN BOSS…/2
He continues: "This has got to be about providing expert help and support, encouraging potential small businesses to look at their business idea from every angle, so that they see the reality 'warts and all'. Then, safe in the knowledge of having a first class business plan, excellent support and have really thought through what they are doing, the 'fear factor' that prevents three quarters of budding entrepreneurs from turning dreams into reality will no longer be an obstacle."
Men appear to like the security of working for others more than women - almost a third (32 per cent) said that this was the reason why they wouldn't start their own business. On the other hand, over a quarter of women (28 per cent) saw the responsibility of running their own company as the biggest barrier to starting-up.
Other perceived obstacles to starting a business were not knowing where to find the initial capital outlay (14 per cent) and not knowing how to go about it and who to turn to for advice (12 per cent). Men and women were equal in identifying the latter reasons as why they wouldn't realise their entrepreneurial ambitions. However, in a case of 'older and wiser', the perception of lack of knowledge and advice as a barrier decreased with age, from over a third of 16-24 year olds seeing it as an obstacle to fewer than a fifth of over 55's.
To help new and existing businesses, Lloyds TSB has developed RouteMap - a business development programme through which businesses can identify their goals and find ways to reach them. To find out more, visit
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Notes to Editors:
- The research was conducted in October 2003 using around 3000 respondents.
Key Results were:
- Sixty per cent of respondents have considered starting a small business.
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SIXTY PER CENT OF BRITS HAVE CONSIDERED BEING THEIR OWN BOSS…/3
- One fifth said it was because they were fed up working for others.
- One fifth wanted to turn an interest or hobby into a business.
- Wanting to run a business to earn more money and secure a better financial future attracted 16 per cent of respondents.
- A further 16 per cent who wanted to achieve a better work-life balance through being able to work more flexible hours as their own boss.
- Fewer than five per cent wanted to start a business as they could see themselves as a high-flying entrepreneur.
- A quarter of men were fed up of working for others.
- The most disenchanted were the 25-34 year olds - a quarter of these said that they were fed up working for others.
- Wanting to start a business to benefit from more flexible hours was cited most by 25-34 year olds (22 per cent).
For further information:
Jo Ganly
Lloyds TSB Press Office
Tel: 020 7356 2075