Starting a Business: Why Do People Take the Plunge?
People choose to take the plunge and start their own business for various reasons. Be it financial gain, frustration in their current role, lack of job opportunities, or the big business idea – perhaps they have designed the next best thing to a bread slicer.
In addition to people’s inner drive or motivations, the UK government is also trying to encourage more of us to go into business. One example is George Osborne increasing the bank levy by £800 million for 2011 to persuade lenders to finance small businesses.
To better understand why people start their own business, professional indemnity insurer, Hiscox ran an online poll asking entrepreneurs what motivated them to turn their idea into reality.
Possibly surprisingly, the main reason wasn’t financial gain. Rather, Hiscox found 32% of responses indicated people went into business to be their own boss (although the option ‘to make more money’ was a close second at 27%).
The remaining results showed:
- 16% hoped to bring to life a great business idea
- 14% wanted to escape the corporate world
- 10% had started their own business as a result of being made redundant
As the poll allowed users to choose more than one option, it will come as no surprise that some of the participants had more than one reason for going it alone. Taking the leap and starting your own business isn’t an easy decision when weighing up the pros and cons (as some of us well know).
Although making money will always be important to business owners, it is interesting to see the main driver is a desire to be their own boss. This could suggest that people are taking the plunge because they want independence and the freedom to sculpt their own future, with or without a bread slicer.