A recent poll of 2,000 adults has revealed that confidence and age are among the primary reasons Brits hesitate to start a business, but lack of funding remains the most significant obstacle. Six in 10 respondents cited insufficient money as the main barrier preventing them from pursuing their entrepreneurial dreams.
Key Findings from the Research
The study, commissioned by AXA UK, found that other common issues include lack of relevant experience, fear of failure, and reluctance to abandon the security of a day job. Despite these uncertainties, there is a strong desire for self-employment, with 26% believing everyone should strive to start their own business and 32% already seeking advice.
Financial and Practical Challenges
Tax and accounting were identified as the most challenging aspects for aspiring entrepreneurs (28%), followed by staying updated with technology (10%) and time management (8%). Notably, 76% of respondents were unaware of government assistance available for startups, even though many called for more support, including lower business rates (29%), reduced energy bills (24%), and lower National Insurance contributions (24%).
The Role of Protection and Support
Almost half (47%) said they would be more likely to start a business if they felt protected from potential failures. Mike Crane, managing director of AXA Insurance UK - Commercial, emphasized that while age is often perceived as a barrier, evidence shows it does not determine success. He noted that the hardest step is often the first, and having the right support from the beginning can make a crucial difference.
AXA Startup Angel Competition
The research coincided with the launch of AXA UK's annual Startup Angel competition, where two entrepreneurs can win £25,000 plus mentoring. To further support aspiring business owners, AXA UK is bringing a kitchen table to Broadgate Circle in London on 7th May, offering advice from successful entrepreneurs Raphael Sofoluke and Izzy Obeng.
Top 10 Barriers to Starting a Business
- Lack of money
- Lack of confidence
- Perceived age (too old or too young)
- Lack of necessary experience
- Insufficient resources for success
- Fear of failure
- Comfort zone too entrenched
- Job security concerns
- Work-life balance issues
- Lack of a support system
The survey highlights that while financial constraints are paramount, psychological and practical barriers also play a significant role. Many Brits have entrepreneurial aspirations but need more accessible funding, protection, and guidance to take the leap.
