- Lack of money, confidence and age are the key reasons why people don’t start their own business, according to new AXA UK research
- Despite recognising the challenges, 26% of the 2,000 people surveyed believe everyone should launch a startup
- Budding entrepreneurs struggle to source funding - 76% are unaware that government grants are available to kickstart small businesses
Confidence and age are among the top reasons Brits don’t start a business – but lack of money is the real stumbling block, according to research.
A poll of 2,000 adults found other common issues include lack of relevant experience, fear of failure and not wanting to give up the security of their day job.
Despite the uncertainties, there is a clear desire for people to go it alone with more than a quarter (26%) believing everyone should strive to start their own business and 32% already looking for advice.
But six in 10 said lack of funding was holding them back from pursuing their entrepreneurial vision.
Tax and accounting were the issues those surveyed said they would struggle with most (28%), while staying up to date with technology (10%) and time management (8%) were viewed as other less demanding challenges.
In the 18-24 age group, 24% thought they were too young to start a business while 39% of 55-64-year-olds said they were too old.
AXA UK commissioned the research following the launch of its annual AXA Startup Angel competition, where two budding entrepreneurs can win £25,000 to help get their business off the ground plus mentoring from successful startup owners.
Starting a business is fraught with challenges, from securing the funding to being confident enough to take the plunge and go it alone.
The hardest step is often the first and having the right support from the beginning can be the difference between success and failure.
Our survey found some people think age - whether too young or too old - is a barrier, but there's plenty of evidence to show it's not an issue when it comes to launching a successful business.
The study also found 50% of those who have started their own business used online research to get it off the ground, while 25% turned to AI.
Despite lack of funding being the most significant barrier to launching a business, more than three quarters (76%) didn’t know government help was available for startups.
However, the survey showed people thought more support should be provided, with 29% calling for lower business rates, 24% saying energy bills should be slashed and 24% citing reduced National Insurance contributions.
In the research, conducted via OnePoll.com, almost half (47%) said they would be more likely to start a business if they felt protected from things going wrong.
To explore potential small business ideas and offer expert advice to would-be entrepreneurs, AXA UK is taking a kitchen table to the streets of London. The insurer will be at Broadgate Circus from 10.30am tomorrow () with AXA Startup Angel mentors Raphael Sofoluke and Izzy Obeng, who both founded successful businesses from scratch.
The best ideas for businesses can come at random moments and are often brought to life by burning the midnight oil at the kitchen table.
We’re taking to the streets to find out what’s holding people back from starting out on their own and to offer advice from leading entrepreneurs.
It can feel like a leap into the unknown, but if you equip yourself with the necessary knowledge and surround yourself with the right people, amazing things can happen.
The 10 most common reasons stopping Brits from starting businesses
- I don’t have enough money
- I don’t have the confidence
- I think I’m too old
- I don’t have the necessary experience
- I don’t have the resources to make a success of my business
- I’m scared of failure
- I’m too far into my comfort zone
- I’m scared about my job security
- I have work-life balance concerns
- I don’t have the necessary support system