Recession Fails to Deter Start-ups

The number of newly established business owners and those trying to start a business increased between 2002 and 2009, despite the recession, the Global Entrepreneurship Monitor has found. The report from the Hunter Centre for Entrepreneurship at Strathclyde University, which surveyed 170,000 adults globally, found that 5.8% of UK adults were either starting a business or running a firm less than 42 months old in mid-2009. This compared with 5.5% in 2007 and 5.4% in 2002. “It’s surprising that new business has been maintained, but in the recession a lot of people lost their jobs and took the chance to create their own business,” said report author, Jonathan Levie.  “Another factor is that resources are relatively cheap, so there are buildings available at low rental costs ... »

Business TV has Little Relevance for Small Business

Most business television programmes hold little relevance for small firms ― that is the message from business groups as new series of Dragons’ Den and The Apprentice are set to be screened.  An eighth series of BBC2’s Dragons’ Den, in which entrepreneurs pitch for funding, is due in the coming months, while the new Junior Apprentice, in which ten potential Lord Alan Sugar protégés aged 16-17 compete for a £25,000 career development fund, starts on BBC1 on Wednesday May 12. The National Federation of Enterprise Agencies’ chief executive, George Derbyshire, said that people turn on The Apprentice for the fireworks rather than the business lessons. “The ultra-competitive approach you see on The Apprentice is not always a good trick ... »

2009 Start-up Rates Higher than 2008

High levels of unemployment and the need to earn a living caused more people to start a business last year than in 2008, Barclays has claimed. Commenting on new statistics on start-up rates produced by the British Bankers’ Association (BBA), Barclays’ head of SME research, Richard Roberts, said the total number of businesses started in 2009 will exceed the 525,000 set up in 2008. According to the BBA survey, which measures start-up rates based on new banking relationships, fewer businesses were set up in the first ten months of 2009 – 460,000 compared to 468,000 in the same period in 2008. However, Roberts said that the total figure for start-ups in 2009 is likely to be higher when the last two months of the year are included. “We know from our own figures that more... »

SMEs Lose Out in Queens Speech

Recession leads to launch of 300,000 Home-based Businesses

Almost a third of a million people have started home-based businesses in the last 12 months, mainly due to redundancy or job insecurity, a new report from Enterprise Nation has revealed. The 2009 Home Business Report found that 300,000 home-based businesses have been created in the last year, taking the total number to 2.8 million. The survey also found that 49% of home-business owners said that the freedom to make their own decisions was the most enjoyable part of self-employment. The research also revealed that 89% expect their turnover to increase during the next 12 months. Enterprise Nation founder, Emma Jones, said that the recession has caused many people to set up in business: “Some people have been made redundant and decided to use the opportunity to do their own thing. Other... »

Choose Spouse as Business Partner of Choice

Choose Spouse as Business Partner of Choice

Would-be entrepreneurs would prefer to go into business with their spouse rather than another family member, research from insurance firm More Th>n has found. A survey of 1,200 adults by More Th>n found that 50 per cent would choose to team up with their spouse or partner when starting a new business. This was well ahead of parents, who were seen as a dependable the best business partner option by just 17 per cent, friends (10 per cent) or children (seven per cent). “Successful business partnerships often rely upon the different skills and personalities that spouses can offer,” said Warwick Business School’s professor of enterprise, and author of the report, Stephen Roper. “In love, opposites attract, and the same is probably true for business partnerships. &l... »

Start-ups undeterred by economic problems

The National Federation of Enterprise Agencies (NFEA) has stressed that new start-up figures prove entrepreneurs are undeterred by the state of the economy. According to the Barclays quarterly survey, there were 98,000 new start-up businesses in England and Wales in the first quarter of 2008, compared with 86,400 in the fourth quarter of 2007. The most popular industries for start-ups were business and financial services, construction and retail. “It’s encouraging to see the numbers of new businesses holding up in these worrying times, which is a tribute to the determination and persistence of the current generation of entrepreneurs,” said NFEA chief executive George Derbyshire. “No-one with a sound idea, a solid business plan and the right skills need be deterred b... »