Entrepreneurs see running their own business as a lifestyle choice

More than a quarter (27.57 per cent) of small business owners recently setting up in business said the single most motivating reason was a lifestyle choice, according to a new report by MadeSimple.

The study, titled ‘What’s NOT simply for the UK’s startups?’, surveyed more than 1,300 small business owners with the aim of acquiring a fuller understanding of the current day-to-day problems experienced by those starting up and running a small business.

Aside from it being a work-life balance decision, entrepreneurs also opted to start their own business for financial freedom (24.60 per cent). Meanwhile almost one-in-five (19.12 per cent) said they had grown tired of working for someone else.

However, more than half of all entrepreneurs surveyed (52 per cent) said that, despite the breadth of information available both online and offline, they felt they didn’t have enough access to the right information when setting up their business.

Nevertheless, half of all entrepreneurs surveyed admitted that they didn’t turn to anyone for advice, choosing to muddle through their business setup alone. Less than a quarter (22.88 per cent) opted to turn to an accountant for advice, while only 12.23 per cent consulted a professional business advisor.

When it comes to taking care of the necessary administrative business tasks, four-in-five (81 per cent) entrepreneurs do it all themselves. This includes diary management, raising invoices, paying bills and answering calls.

Though the perseverance of these entrepreneurs should be applauded, it also raises serious questions as to whether their failure to seek professional advice and support at the infancy of the business plays a part in the downfall of startups that don’t survive the long haul.

The MadeSimple report concludes: “It’s clear from this study that the entrepreneurial spirit within the UK continues to thrive. Whilst those starting out admit that they do not have access to all the right knowledge they require when starting out, it is not reducing the appetite for getting started.

“And whilst funding and cash flow are cited as a key concern, the majority of businesses start out with the intention of ‘self funding’ the business.

“The research also identifies that it’s not only ‘funding’ where our startups prefer to be self-sufficient. Apart from accountancy services, very few services are outsourced with respondees taking the reins with bookkeeping and recordkeeping, marketing the business and managing all general business administration.”

Date published 9 Aug 2016 | Last updated 9 Aug 2016