One in ten workers considering setting up ‘safety net’ businesses
A significant portion of the UK workforce intend to set up their own business in the next 12 months in a bid to combat uncertainty in the market.
New research from AXA Business Insurance found that one in ten workers is considering self-employment with many suggesting it is a ‘safety net’ as they feel their current employment is insecure.
It means that as many as 3.5 million people are considering self-employment, while those in professional and corporate roles said they feel most at risk.
Of those considering their futures, 87% said they had already taken some steps towards starting a business, such as applying for finance or taking qualifications.
The report also notes that even if half of the individuals set up a new business, it would signal a more radical shift towards self-employment than was previously thought.
With workers suggesting that they fear redundancy, relocation or disruption, it suggests that some businesses may be under pressure.
From financial difficulties and cash flow problems through to potential insolvency, small businesses have a number of hurdles to overcome under current economic conditions.
Others need to assess the alternative finance options available to them to ensure they can progress with any growth plans they may have, or just to consolidate their current position.
When questioned on job security, four in ten individuals said they didn’t believe their current job would last beyond 2021, while one in ten suggest it will not see out the year.
Those in middle management and corporate roles displayed most insecurity, while the most common reasons listed related to Brexit, government policy, poor management policies and automation.
Nearly four in ten people said that achieving greater independence and control was a major factor in wanting to start-up businesses themselves.
Of course, that is not without risk. The latest available data – published last summer by Ormsby Street – showed that although more than 90% of firms survive their first year of trading, that figure dropped to 40% after five years.
Nearly one in five questioned said that they intend to remain in employment for added security, even when setting up a business.
By Phil Smith