A survey of 1,000 people from Business is GREAT found that fear prevents 39 per cent of potential entrepreneurs from starting a business.
Who are these potential entrepreneurs?
Young people are most likely to be preoccupied with entrepreneurial thoughts with 52 per cent of 18 to 24-year-olds saying they think about starting a business most days. This is in contrast to just 24 per cent of those aged 55 and above.
Although fear of failure prevents one in three workers from starting their own company, the findings suggest many prioritise entrepreneurship above other life goals. 41 per cent of respondents said setting up a company would more of an achievement than raising a family and 62 per cent say it is one of their greatest ambitions.
SMEs and the economy
There are approximately five million small businesses in the UK. If just one per cent of prospective entrepreneurs went ahead and started up a business, the economy would benefit from an added boost of more than £33 million if each individual made a profit of just £1,000.
In the infographic below, we explore the obstacles preventing entrepreneurs from going ahead with business plans and look at ways they can conquer their fears and overcome common business challenges.
Fears surrounding a lack of support
Some respondents cited a shortage of guidance as a reason for not pursuing an idea. 70 per cent of those questioned said they needed a mentor for support while 60 per cent blamed a lack of inspiration for a reluctance to make progress.
Almost 70 per cent of respondents said a lack of finance is holding them back. However, by gradually building up a healthy business savings fund, entrepreneurs can save money for when they need it most, using savings interest to give their cash an extra boost.
With so many business considerations from administration to marketing, it is understandable many prospective entrepreneurs may have doubts about their abilities to manage a new company. However, whether they seek advice from fellow professionals, or put plans in place to increase funding, there are ways of minimising these concerns.
Aldermore bank is passionate about helping SMEs to achieve goals and support the UK economy. As a result, the bank provides a series of straightforward and rewarding business savings accounts to help entrepreneurs and small companies on their path to succeed.
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