60% of Brits want to start own firm

Entrepreneurial spirit is alive and well in the UK despite the recession with two-thirds of the population having ambitions to start their own business, according to a survey by the Association of Chartered Certified Accountants (ACCA).

The survey suggests that 60% of Brits would like to be their own boss and that the entrepreneurial spirit is even stronger amongst 25-34 year olds, with three-quarters aspiring to one day run their own company.

The survey of 2,000 adults from across the UK also revealed that despite the trend for multi-nationals and larger enterprises, people still believe that small businesses have an important role to play in those communities. 96% of those surveyed believe that small businesses remain vital to their towns and cities.

"Small businesses are the lifeblood of the UK economy and it is wonderful to see that people have such a high regard for the role SMEs play within the community," said Glenn Collins of ACCA.

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Age no barrier to entrepreneurs

Older entrepreneurs accounted for almost 30% of new business start-ups between 2001 and 2005, according to research conducted by the National Endowment for Science, Technology and the Arts (NESTA).

The report revealed that entrepreneurs aged between 50 - 65 year-old started 27% of successful start-ups between 2001 and 2005

"At a time when an ageing society is being viewed as a problem, our study shows that there is a wealth of experience driving the UK economy today," said Jonathan Kestenbaum, chief executive of NEST

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Record low interest rates must stay

A third of entrepreneurs have seen a positive impact on their business from the Bank of England’s decision to keep interest levels low, according to research from Tenon, but any signs of recovery remain fragile.

Commenting on today’s MPC decision, Andy Raynor, chief executive of Tenon Group, said:

“Maintaining this low rate of interest is good news for entrepreneurs as a third have found the lowering of interest rates to be beneficial to their business. However, any expectations of recovery this year may require additional stimuli as many entrepreneurs are still struggling to get back on their feet.

“Low interest rates are highly beneficial for small businesses, but these levels must remain in place for a considerable period of time. It is too early to be certain of any economic recovery this year and a rise in interest rates would be disastrous for confidence in the foreseeable future.”

The Group, which offers specialist advice to entrepreneurs, also found that those in Scotland have seen the most benefit from the cuts - 43% have seen a positive impact on their firms.

Source: Tenon

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A new breed of entrepreneurs arise from the recession!

Research has shown a new breed of 'super entrepreneurs' is evolving as a result of the downturn.

These business owners, who Darwin would have been proud of, are making themselves fit to survive the current downturn and thrive in the future.

Super entrepreneur profile

The study, conducted by Bibby Financial Services, shows that the the new breed of 'super entrepreneur' is most likely to be:

- Female
- Aged between 45 and 54
- Living in the South East
- Have started their business between 1995 and 1999
- Running a business with a turnover of between £250,000 and £500,000
- Running a business that employs five or more people
- Experienced two downturns including this one

Related statistics from the study

-79% of small and medium-sized firms making, or planning to make, positive steps in order to survive and face economic uncertainty head on.
- 69% of owners and managers claiming the recession has encouraged them to keep a closer eye on their finances.
- 84% of owners and managers also making positive changes specifically in relation to their clients/customers and suppliers.
- 37% are cutting their marketing or advertising and 33% are even going as far as to use their personal savings to ensure the existence of their business.
- 28% are scaling back on production and 26% are having to bring services back in-house
- 7% are downsizing premises or cutting office spend altogether and opting to run the business from home.
- Experience counts

The figures from the Bibby study also show there is no substitute for experience - over half (54%) of business owners and managers have never experienced a prior recession or downturn.

But it is business owners who have ridden out past downturns who are more likely to be scrutinising their finances more carefully, with 81% of business owners who’ve experienced a number of downturns since the early 1980s paying more attention to finances compared to just 64% of those who’ve experienced this recession only.

However, 35% of those who started their business in the last three years know they need to develop their understanding of financial management.

Source: Bystart

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