The first quarter of a new year, typically tends to be one in which many a new business is started. Certainly given the upward trend year on year in new start-ups perhaps the next few months are likely to see many people switching from employment to self employment or opting to launch a new business venture. Why? The start of a new year is often the time when we look at, or at least think about, doing something different with our lives.
The total number of start-ups nationally was 526,447 which smashed all previous records for new start-ups.
There seems to be a number of reasons as to why there is a growing trend towards self employment.
Perhaps one of the key trends is people seeking to attain a better work/life balance with the chance of having greater freedom and control over their own destiny as well as a drive for starting their own business.
There also seems to be a growing trend for people to leave employment to work with their previous employer on a contract or self employed basis. This approach, not least within the public sector, can give rise to mutual benefits to both the employer and employee.
Despite the associated debt of a student loan, many new ventures now come about as a result of University Graduates choosing to run their own business as opposed to entering the ever competitive market for graduate employment. Equally, those undertaking more vocational courses in Further Education often opt to pursue their trade through self employment rather than joining a trade related business.
Whilst there doesn’t appear to be a sector bias towards new start ups, with starts up coming from a broad range of business sectors, it does seem to be the case that many increasingly benefit from a relatively low cost base to start. This would probably be expected, but does serve to highlight the nature of start-ups, possibly around the provision of services, business administration, the trade etc. However we have also seen a growth in new businesses involved in the digital and technology sectors.
For some dual income households it can be the case that a mix of full time, part time and self employment create an ideal mix for a sustainable financial model for the household.
The importance of start-ups as part of a vibrant and sustainable economy cannot be stressed enough. There is, however, a very real need for those making the bold and courageous move to go it alone, to be supported on their journey. Family and friends will no doubt play a key part in this, but access to specialist advice, especially in the early days, can often be the difference in realising the dream or not.