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Spring is the best time of year to launch a successful business

POSTED: 10th October 2017
IN: Newsroom
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  • almost nine in ten businesses that are founded in the spring are a runaway success according to their owners
  • The early 2000s were the most prosperous years to launch a firm, with 2010 and 2011 the worst years
  • More businesses were set up between 2007 and 2017 than in the 1990s
  • Nearly half (48%) of SME owners created their own business because they wanted to become their own boss, and almost all (92%) are glad they did it

The latest Aldermore Future Attitudes report revealed today that the majority of SME bosses are boastful about the performance of their firms, with over four fifths (85%) viewing their business to be a success. Furthermore, UK small businesses that were established in the springtime are flourishing the most.

Almost nine in ten (88%) SME owners whose businesses began trading in this particular season, representing more than 4.8million firms* in the UK, say their business is a triumph.  And when it comes to the best decade, it seems that firms set up during the early 2000s are doing particularly well, with over nine in ten (92%) leaders saying their organisations are thriving. 

However, businesses set-up between 2010 and 2011 seem to be doing less well, with fewer than nine in ten (86%) leaders believing their business is a success. This is also the case for businesses still finding their feet, with only three fifths (59%) of SME owners who launched their business this year or last, stating that they are currently flourishing.

The data also found that more new businesses were launched between 2007 and 2017 than they were in the 1990s. This finding is further supported by the latest industry figures**, which reveal the UK has witnessed a significant jump in the number of business ‘births’ occurring per year.  383,000 businesses were created in 2015, compared to only 275,000 businesses in 2005, an increase of 39% in a decade.

Past 10 year of the most recent recorded UK business births

Year

Number of business births

2005

275,000

2006

256,000

2007

281,000

2008

267,000

2009

236,000

2010

235,000

2011

261,000

2012

270,000

2013

346,000

2014

351,000

2015

383,000

Source: ONS

Aldermore’s study further revealed the range of reasons why people wanted to set up their own business in the first place. Just under half (48%) of SME owners simply wanted to become their own boss, over two fifths (45%) needed more flexibility in their lives and 43% wanted to be free to make their own decisions. Three in 10 (30%) leaders simply felt they could do better on their own, with over a quarter (27%) admitting they were fed up with office politics and that they wanted to make more money.

Happily, over nine in ten (92%) SME bosses were glad they set up on their own, although half (50%) did admit that it was much harder work than they expected.  A third (32%) said their life’s dream had been fulfilled.

Carl D’Ammassa, Group Managing Director, Business Finance at Aldermore, said: “With more people looking to become their own boss, it is vital they have a clear business plan in place to ensure everything goes as smoothly as possible, both in the run up to launch and, more importantly, throughout the critical first 12 months of trading.

“Small and medium-sized businesses play a critical role in strengthening the UK economy and we must provide them with as much support as possible to ensure they triumph in the long run. Establishing or owning a business is a dream for many, however it is key that all budding entrepreneurs realise the extensive amount of time and effort that will be needed to achieve their goals.”

**Ends**

For further information, journalists can contact:

Carmel McCarthy, Aldermore
Phone:  020 3553 4216
Mobile:  07464 644754
Email:  carmel.mccarthy@aldermore.co.uk

Tom Pavey-Smith / Chantal Heckford, Lansons
Phone:  020 7294 3606 / 3630
Mobile:  07917 165588 / 07801 748683
Email:  aldermoreb2b@lansons.com

Notes to Editors:

Research conducted by Opinium Research between 30th July and 3rd August 2017 with a nationally representative sample size of 1,003 senior decision makers in SMEs.

* SMEs figure – calculated using Federation of Small Business statistics that say the UK has 5.5m SMEs (2016 figures). Aldermore Future Attitudes research showed that 88% of SME owners with a business that launched in the spring would admit to it being successful. 88% of 5.5m = 4.84m

** ONS Business demography, UK reports

 

For further information about Aldermore, please review our Notes to Editors page

 

 

  • Business
  • Press Release
  • Business Finance

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