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Recession Spurs Growth in Start Ups
Listed under: News
Published: Thursday, April 01, 2010
The number of people launching their own businesses has risen significantly during the economic downturn, with a recent report revealing that two fifths of Brits would consider setting up their own enterprises if they were made redundant.
The research, conducted by the Home Learning College, shows that over 65s are currently showing the most entrepreneurial spirit, seeing a whopping 48% of them say they would launch their own businesses if they lost their jobs. However, the survey also reveals that pessimism about the economy recovery is also highest amongst this age group, with a startling 78% believing the worst of the recession is yet to come.
Interestingly, the findings also show that the gender gap between upcoming entrepreneurs is also narrowing, seeing 37% of the new businesses launched this year started by women – up from 14% in 2008 – compared to 43% by men.
Investigating some of the steps people have already taken to protect their livelihoods in the event of redundancy – a fear currently held by a third of workers in the UK – the findings show that 12% have undergone self-funded training to enhance their skills, with only 37% failing to take any measures at all.
The research also reveals that those aged under 24 are presently the most optimistic about the country's short-term prospects, with 51% believing things will improve this year.
Commenting on the findings, Dave Snow, academic director at the Home Learning College, says, “Britain has a strong heritage of producing world class business leaders. It is heartening to see that the recent economic climate hasn’t dented our renowned entrepreneurial spirit. However, a healthy dose of reality is necessary for anyone who is seriously thinking about setting up a company.
He adds, “It is essential to have a solid understanding of the various skills required to run a successful business, such as finance, marketing, IT and management. Budding owners should conduct an honest assessment of their current knowledge and experience, and invest in a targeted training course to fill any gaps before they take the plunge.”
The research, conducted by the Home Learning College, shows that over 65s are currently showing the most entrepreneurial spirit, seeing a whopping 48% of them say they would launch their own businesses if they lost their jobs. However, the survey also reveals that pessimism about the economy recovery is also highest amongst this age group, with a startling 78% believing the worst of the recession is yet to come.
Interestingly, the findings also show that the gender gap between upcoming entrepreneurs is also narrowing, seeing 37% of the new businesses launched this year started by women – up from 14% in 2008 – compared to 43% by men.
Investigating some of the steps people have already taken to protect their livelihoods in the event of redundancy – a fear currently held by a third of workers in the UK – the findings show that 12% have undergone self-funded training to enhance their skills, with only 37% failing to take any measures at all.
The research also reveals that those aged under 24 are presently the most optimistic about the country's short-term prospects, with 51% believing things will improve this year.
Commenting on the findings, Dave Snow, academic director at the Home Learning College, says, “Britain has a strong heritage of producing world class business leaders. It is heartening to see that the recent economic climate hasn’t dented our renowned entrepreneurial spirit. However, a healthy dose of reality is necessary for anyone who is seriously thinking about setting up a company.
He adds, “It is essential to have a solid understanding of the various skills required to run a successful business, such as finance, marketing, IT and management. Budding owners should conduct an honest assessment of their current knowledge and experience, and invest in a targeted training course to fill any gaps before they take the plunge.”
