Brits want to start businesses but lack finance

More than one million Britons want to start their own business according to a new study, but there are many barriers getting in their way.

According to Direct Line for Business, 5% of people want to set up a shop – ranging from cafes and bakeries to craft shops – during the next 12 months.

Setting up a café was cited by 6% of respondents while 2% of Brits want to create and sell arts and crafts products.

Restaurants, animal-related professions and consultancies were all commonly cited, highlighting a range of passions that people want to follow.

When looking at sectors, over individual ideas, nearly one in five people wanted to set up a food-related business, while 16% wanted to create a retail start-up.

Barriers to success

Despite many Brits wanting to set up a business, a lack of funding was still a major barrier to their dreams – 51% said they lacked the required capital to succeed.

Almost a third added that they wouldn’t know where to start when trying to create a business plan, which could cause issues in the long term.

For businesses that are already set up, having the necessary capital is an essential part of survival and driving growth.

Many firms fail in their early years as they are unable to source finance or account for unexpected financial outlays – although alternative financial options and restructuring methods do exist, it is not always possible to save a business.

Any business facing difficulty should seek advice at the earliest possible opportunity as a wide range of options may exist then than at a point further down the line.

A lack of direction was more prominent in women taking part in the study, as 43% compared to 20% of men said they felt it was an issue.

While funding is key to businesses in their early days, so too is seeking reliable advice and support – not only does it prepare a company for the short term, but it also helps to secure its long term future as well.

By Phil Smith

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