10/11/03

Sixty per cent of Britain's workers have harboured dreams of starting their own business, but fears about lack of security, increased responsibility and uncertainty prevent most would-be entrepreneurs from making the move, according to new research by Lloyds TSB Business.

A fifth of people (21 per cent) would like to start their own business because they are simply fed up of working for others and want to be their own boss. This was a particularly strong motive for men - a quarter of whom said that this had led them to consider starting up on their own. The second most popular reason for considering business ownership was the desire to turn a hobby or interest into a successful business (18 per cent).

An overwhelming three quarters (75 per cent) said, however, that they had not realised their dreams because ultimately they liked the security of working for somebody else, owning their own business would be too much responsibility or that they wouldn't like the uncertainty.

David Singleton, managing director, Lloyds TSB Business, says: "There is no doubt about the British appetite for business ownership, but sadly this desire fades largely through fear of the unknown. Breaking down the barriers that stop businesses from starting-up is clearly a priority."

He continues: "This has got to be about providing expert help and support, encouraging potential small businesses to look at their business idea from every angle, so that they see the reality 'warts and all'. Then, safe in the knowledge of having a first class business plan, excellent support and have really thought through what they are doing, the 'fear factor' that prevents three quarters of budding entrepreneurs from turning dreams into reality will no longer be an obstacle." 

Men appear to like the security of working for others more than women - almost a third (32 per cent) said that this was the reason why they wouldn't start their own business. On the other hand, over a quarter of women (28 per cent) saw the responsibility of running their own company as the biggest barrier to starting-up.
 
Other perceived obstacles to starting a business were not knowing where to find the initial capital outlay (14 per cent) and not knowing how to go about it and who to turn to for advice (12 per cent). Men and women were equal in identifying the latter reasons as why they wouldn't realise their entrepreneurial ambitions. However, in a case of 'older and wiser', the perception of lack of knowledge and advice as a barrier decreased with age, from over a third of 16-24 year olds seeing it as an obstacle to fewer than a fifth of over 55's.     

Provided by the Lloyds TSB