Tax & admin · 24 November 2016

Majority of UK startups founded within a £1,000 budget

Launch 22 is an example of a business that has utlised the Start Up Loans scheme
The news of low budget costs could kick-start a new generation of entrepreneurs

Most entrepreneurs in Britain are able to bring their business idea to life within a £1,000 budget, according to new research.

A survey of over 1,500 small UK business owners, undertaken by digital marketing advisor Yell Business, found that 40 per cent of entrepreneurs needed between £1 and £1,000 to begin trading – while 17 per cent claimed it didn’t cost them them anything.

The study revealed more positive trends as over a quarter of new businesses turned over a profit within one or two months. On average, it took new companies nine months to register profits.

The news of low budget costs may go some way to inspire the three quarters of Britain’s workforce that have “entrepreneurial ambitions” of their own.

Commenting on the research, Mark Clisby, marketing director at Yell Business, said that the findings shed “a promising new light on starting up and making success of a dream”.

“While there will likely be long hours in the set-up period, and risks that need to be considered after making that initial leap, we have been told time and time again by our customers that they wouldn’t switch from following their dreams.

“Starting your own business means enjoying more freedom, flexibility, and above all, choosing what you do every day,” Clisby said in a statement.

The research also provided further proof that Britain’s female entrepreneurs are shrewder than men when it comes to funding enterprise. Some 68 per cent of women surveyed managed to start their business within the £1,000 threshold, compared to less than half of men.

A recent report from Lloyds bank exposed a gender spending gap among new entrepreneurs, with men possibly struggling to budget effectively. The difference was found to be starkest in IT expenses – female business owners spent just £470 compared to the £3,149 invested on IT equipment by male counterparts.

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ABOUT THE EXPERT

Simon Caldwell is a reporter for Business Advice. He has a BA in politics and communications from the University of Liverpool, and previously worked as a content editor in the ecommerce industry.

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