A third of UK adults are thinking about starting a business or side hustle in 2023 in a bid to increase their income as household costs soar. New research from small business support platform Enterprise Nation found that figure rises to almost half (48%) amongst young adults aged between 18 and 24 who said they are considering starting a business. That age group alone equates to more than two million individuals with entrepreneurial ambition.
Another six per cent said 2023 was too soon - but hoped to start-up a business at some point in their career. While recessions often do see more people starting a business because of job insecurity or unemployment, the research found that only six per cent said it was because they had lost their job. However, 33 per cent did say they wanted to start up their own business in order to supplement part time work or wages from a zero hours contract, with 43 per cent saying they were worried about paying the bills.
Another third (29%) said they were starting a business to follow their dreams or make money out of a skill or hobby (27%).
The most popular sector to start up in was food and drink, with one in ten (12%) saying hospitality or food and drink production was their chosen field. Tech was the next most popular business sector (11%) with fashion the most likely business route for young people (13%).
Emma Jones, CBE, founder of Enterprise Nation, said: “There is clearly a huge appetite to start a business in the UK. While not everyone is an entrepreneur, many people now see starting up as an accessible way to supplement or take control of their income at a time of higher pressures on personal and family budgets.
“Recessions are well known for motivating people to start-up, but while that’s usually down to unemployment, this time many are planning to start a side-hustle while holding down a full or part-time job.
“We need a healthy pipeline of fresh new businesses to support economic growth, increase innovation and add diversity to the UK’s small business community. We need to be ready to support them to develop the skills they need to thrive.”
The research found women were more likely than men to start-up as a side hustle alongside a current job or caring responsibilities (71%) compared to 45 per cent of men.
Half of those living in Liverpool with entrepreneurial ambition said they were motivated to start-up because they were worried about paying the bills (52%), followed by Bristol and Birmingham (both 49%).
Half of young people (52%) said they would start as a side hustle, but interestingly that jumps to 60 per cent amongst 45 to 54-year-olds who would start alongside jobs or caring responsibilities.
Access to funding was a worry for those looking to start-up next year and this anxiety was the highest in Cardiff where 38 per cent said it might be more difficult in 2023 compared to an overall average of 29 per cent.
Enterprise Nation’s annual StartUp Show sees 2,000 people learn the basics of starting a business in London on January 28, 2023.
The firm says tickets for the first in-person show for two years are being snapped up at a quicker rate than they’ve seen in previous years.
