Of those who are eager to go it alone, more than two thirds think the biggest barrier would be the challenge to secure funding, and around a third (37 per cent) wouldn’t know where to look if a bank turned them down.
Some 40 per cent are put off by the lack of information available to them on how best to set up a business, according to a study by Amigo Loans.
Even existing business owners are confused, with 79 per cent of current small and medium-sized enterprises (SMEs) not aware of the funding options available to them and 21 per cent believing lack of funding was their biggest barrier when setting up on their own.
Almost 69 per cent of aspiring entrepreneurs want to start their own business so they can be their own boss, while more than a third (38 per cent) are keen for a new venture, with 37 per cent claiming to have some great ideas to pursue.
Other reasons given by respondents include being in a job they didn’t enjoy (30 per cent), and the belief that starting a small business would be a good way to contribute to boosting the UK economy (29 per cent).
The most popular industry to start a business is technology and IT (12 per cent), followed by fashion and retail (9 per cent), and catering and hospitality (8 per cent).
Almost a fifth of aspiring male entrepreneurs dream of starting a tech/IT-based business, whereas a fashion venture is the more popular choice for 11 per cent of women.
James Benamor, founder and CEO of Amigo Loans says, ‘There is a huge amount of talent and ambition in the UK but budding entrepreneurs are being forced to put their dreams on hold as they’re held back by banks that still won’t give them a chance.
‘The stress and sometimes humiliation of being turned down by their bank is leading SMEs to give up on their business ventures all together, and a growing number are being forced down the payday route. People who want to start their own business need to be aware of the other options and alternative forms of credit available – whether that’s through a guarantor loan, or a credit union.’
Looking for finance? SmallBusiness.co.uk is working in partnership with trusted lenders to find the best business funding deals. Find out more here.
