Majority of start-ups cost less than £2,000 in funding, says survey

More than three-quarters (76 per cent) of micro-business start-ups have launched their firm with less than £2,000 of start-up funding, according to a recent survey from freelance website, PeoplePerHour.
 
These figures arrive just days after the Prime Minister’s enterprise adviser, Lord Young, published the ‘Growing your Business’ report, indicating that now is a “very good time” to get a start-up off the ground.
 
Entrepreneurs and professionals who have previously shelved ideas for business start-ups will be encouraged to read that the average cost of starting a firm in the UK is just £312 – less than the average weekly wage.
 
In terms of business premises, the vast majority of respondents (86 per cent) considered themselves as 'spare room' start-ups, running their business from a home office as opposed to a dedicated office or shared workspace.
 
Additionally, more than a third of micro-business owners surveyed confirmed they kick-started their business on the side of a full-time job.
 
The report also underpins recent discussion regarding the availability and access to funding for start-ups. Just 2.5 per cent of owners polled confirmed they obtained a business loan, with a further 2.5 per cent receiving a grant, and 0.8 per cent citing financial assistance from private investment.
 
Perhaps unsurprisingly, almost a quarter (24 per cent) of all start-up micro-businesses launched in the last year have been internet-based, with design, marketing and PR businesses also featuring heavily.
 
Xenios Thrasyvoulou, founder and CEO of PeoplePerHour, said: "Starting a business is now most definitely open to anyone. You don’t have to be from a wealthy family, have a background in finance or have started on your entrepreneurial journey while in your teens.
 
"The belief that it takes thousands of pounds of start-up capital to launch a business is simply not the case anymore. A large number of micro-businesses are launched from home offices with very limited funds."

Date published 20 May 2013 | Last updated 20 May 2013