According to latest findings, there are more people than ever choosing the self-employed route, with the number of first-time UK business directors at an all-time high.
Recent research from Experian has found that not only are there a record number of UK ‘debut directors’ (individuals listed as a company director for the first time), these people are starting up with less investment than ever before, with an increasing proportion coming from backgrounds with lower than average levels of wealth.
Findings reveal that more than half a million businesses were created in the UK last year (515,000 in 2013, up 8.9% from 473,000 in 2012), with the proportion of first-time directors rising by 12.6% (304,000 in 2013 compared to 270,000 in 2012).
Max Firth, Managing Director for Experian Business Information Services, UK&I, commented on the report, “These figures suggest a shift in how we should view the average UK entrepreneur. It’s not all high-tech start-ups and Dragons’ Den-style big ideas. An increasing proportion of new business directors are making the most of the lower start-up entry levels; grabbing a mobile phone, a laptop and a flexible workplace, and creating their own jobs and their own opportunities.
He added, “While this increasing population of Debut Directors should be celebrated, there’s much they can do to improve their chances of success. Some may still lack the experience, capital and contacts needed to survive those first few tricky years. So it’s crucial for young entrepreneurs to tap into business support networks for advice and they shouldn’t underestimate the value in partnering with a more experienced director if they can. Just as crucially, they need be aware of how others may see their business and the impact this could have on their access to essential services and potential funding opportunities.”
Considering making the switch from working as a permanent employee to a contractor? Then read our free downloadable guide to moving from permanent to contracting, you may also find our advantages and disadvantages of a Limited company page useful.
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