Turner Little reports on the release of new figures, which indicate that unemployment and redundancy have fuelled UK business creation throughout the past five years.
Valued career path
There are many reasons to start a business if you may be unemployed or have recently been made redundant. By pursuing this career path, you can cultivate a stable stream of revenue, become your own boss and enhance your professional CV.
A new survey from AXA Business Insurance has suggested that people in the UK who are unemployed or have been made redundant are increasingly recognising the value of creating their own company. Business portal Start-ups reports as much as 30% of small companies founded in the UK during the past five years were created in response to redundancy or unemployment.
Start-up trends
The survey sheds further light factors influencing British business creation during the past five years. The firm found that increasingly, disability, age and caring duties are being cited by people as reasons they became their own bosses. Almost a fifth (17%) of new companies established during this time frame were created by parents to provide income to supplement the rising cost of childcare.
AXA Business Insurance also found that people aged between 55 and 65, the so called ‘grey entrepreneurs’ are becoming more important to the UK’s economy. A quarter of new businesses were founded by grey entrepreneurs, while 7% were started by people who are state pension age. In the past five years, the number of people who create a business out of a hobby doubled to 30%.
Shot in the arm
Four fifths (80%) of respondents admitted that experiencing a life crisis provided them with the survival skills they required to start their own firms. The crises cited included accident or illness (17%), depression or breakdown (16%), financial disaster (15%), heartbreak (11%) and business failure (9%). Commenting, AXA Business Insurance Managing Director Darrell Sansom said:
“Entrepreneurs are coming from a wider diversity of backgrounds than ever before. Mums-at-home, people approaching pensionable age, and those living with disabilities are all starting up in greater numbers. They’re giving our economy a huge shot in the arm, bringing fresh ideas, creativity and life experience to business. And with the majority telling us they are a success, even at an early-stage, we can certainly see the new style of doing business works.”
Increasingly, Britons are recognising the benefits of starting their own firm. If you wish to join this growing business owner community, you will need to decide which company creation model to utilise. Sole tradership and forming a limited company have different benefits and drawbacks; research these options thoroughly so you set up a business which is right for your circumstances. Turner Little can provide you with advice if you decided to go down the limited company route.
Turner Little
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.
