Whilst data suggests that the UK is currently in recession, the economic environment is not all doom and gloom. Small businesses and new business start-ups seem to be bucking the trend and showing that, as long as you have the right product or skills, you can do well whatever the financial climate.
Don’t let what you cannot do interfere with what you can do. – Coach John Wooden
The Facts about Start-Ups
Whilst it might not seem logical in an economic downturn, March 2012 saw a record number of business start-ups. Data analysis of the records that Companies House holds by Duport Associates shows that enterprise is alive and well in many areas.
Portsmouth saw an amazing 128 new businesses in March 2012, an increase of 20% against the previous record that was set in the same month in 2007 when there were 107 new start-ups. Bath also demonstrated a flair for entrepreneurial spirit with 93 start-ups in the same month, compared to the previous record of 87 recorded in 2006 the same time.
It is not just southern England where business innovation is evident, however. Dudley in the west Midlands also saw a record-high number of new small businesses with 58 new companies being formed in March 2012. The previous record-high was 56 in the corresponding month in 2008. The city of Manchester continues to be a great place to be a small business owner with 1,033 new companies being formed in March, beating the previous record of 934, set the previous month.
The Reasons why Start-Ups are on the Rise
There are a number of reasons why more and more people are starting their own small business instead of seeking conventional employment. Whilst it may seem illogical to go it alone during difficult financial times, the current economic conditions can actually be of benefit.
Consumers who have become more financially focused often have a greater appreciation of independent and local companies. They may have less to spend, but they frequently pay greater attention to where they spend it.
Difficulty in finding a job is often cited by budding entrepreneurs as the reason why they set up their own business. Starting off small, maybe by doing a little freelancing, whilst looking for conventional employment, can turn into something on a grander scale.
Never be afraid to try something new. Remember, amateurs built the ark. Professionals built the Titanic.
Women in particular often start off as “kitchen table” home workers. Starting a business on a limited scale can often work well for those who need flexibility to work around the children or other responsibilities.
Being made redundant can often kick start setting up your own business. Having a redundancy payment can give a once in a lifetime opportunity to try to make a success of being a successful small business owner. Many people have realized the dreams they have been harboring for years.
Why many people are choosing to start a business in these tough times are not quite clear, but the fact that it is done suggests that it is viable. If you are offering goods or services that appeal, have a well thought out business plan and are prepared to accept the risk, there is no reason why now cannot be a good time to take the plunge.
Money follows passion – not the other way around. – David Garland
This guest post was written by Francesca, who lives in the UK and has an interest in all matters relating to business and finance. She currently writes on behalf of Genuine Business.