engage magazine issue 003 \\\\\\\\\\\\\\\'07 - Page 70

70 FACTS Entrepreneurship in the UK YOUNG ENTREPRENEURS IN THE UK: Nearly 60 per cent of 16 to 21-year-olds want to become self-employed and millionaires when they are older Source: UCB Home Loans (Nationwide) survey March 2006 93%, Black African 52.6% and Black Other 52.9%. The predominant source of finance for White people is bank overdraft (29.3%) as it is for Black Caribbean people (38.8%). Source: Global Entrepreneurship Monitor, GEM, Jan 2004 Indian sub-continent Asians are most likely to respond that lack of finance would prevent them from starting a business. Source: SME Knowledge Network, Bradford University School of Management 2006 http://www.bradford. ac.uk/smenetwork/print. php?page=facts2 percentage point from the previous quarter. Source: Small Business Economic Confidence Survey Q4 2006 Every week around 550 businesses are launched by young entrepreneurs under 25, which represent 7% of all start-ups in England and Wales. Source: The Enterprise Report 2005: Making Ideas Happen; Enterprise Insight, 2005 Fewer BME entrepreneurs were involved in the leisure/ personal services or in production/manufacturing. Source: Barclays Black and Minority Ethnic Entrepreneurs Report The rise in BME (black and minority ethnic) businesses is due to a surge in the number of young BME entrepreneurs, with more than twice as many running their own business compared to their white counterparts. They are focusing on being innovators in business/professional services and catering, unlike the older generation where almost half are retail entrepreneurs. Source: Louise Fowler, small business marketing director for Barclays Oct 2005 - http://www.freelanceuk.com/ news/1334.shtml Black women are most likely to feel that ethnicity has strong impact on business (80%), compared to Chinese women (46%) and Asian women (46%). Source: Ethnic Minority Business Conference 2005) Black people are more than twice as likely as white people to set up a business independently, or to be involved with a job related start-up. They are five times as likely as their White British counterparts to be Business Angels. Source: SME Knowledge Network, Bradford University School of Management 2006 www. bradford.ac.uk/smenetwork/print. php?page=facts2 52% of new businesses are developed from the industry in which the entrepreneur works, with an overlap between the entrepreneur’s career from employee to employer. Source: www.bbc. co.uk/wales/thebiz/generic/ facts.shtml Among UK adults, 7.8% expect to start a business over the next three years, 27.2% know an entrepreneur, 36.8% see good business opportunities and 49.6% think that they have the skills to start a business. Fear of failure does however remain high at 35.8%. Source: GEM UK Report 2006 Both Blacks and Indian subcontinent Asians have more positive attitudes towards entrepreneurship. Source: SME Knowledge Network, Bradford University School of Management 2006 www. bradford.ac.uk/smenetwork/print. php?page=facts2 Asians from the Indian subcontinent are twice as likely as White British people to be involved in start-up activity, and three times as likely to be Business Angels. Source: SME Knowledge Network, Bradford University School of Management 2006 www. bradford.ac.uk/smenetwork/print. php?page=facts2 In 2002 the top ten most popular start-up business ideas pitched in the UK were: Clothes shop, Café, landscape gardener, Recording studio, Graphic designer, Hairdresser, Car mechanic, Website designer, Aromatherapist, Handmade toys. Source: www.bbc.co.uk/wales/ thebiz/generic/facts.shtml BAME ENTREPRENEURS IN THE UK: In 2004, BME entrepreneurs accounted for 11 per cent of all new business. Source: Barclays Black and Minority Ethnic Entrepreneurs Report Mixed ethnic background entrepreneurs are nearly five times more likely to set up new technology businesses than their white British counterparts. They are also more likely to be innovative in terms of the newness of their product or service. Source: SME Knowledge Network, Bradford University School of Management 2006 http://www. bradford.ac.uk/smenetwork/print. php?page=facts2 UK ENTREPRENEURSHIP IN GENERAl: 7.8% of all early stage entrepreneurs have 75 – 100% of their markets abroad. Source: GEM UK Report 2006 The predominant source of start-up finance for many ethnic groups is friends and family. The figures are ‘other Asian’ 53.4%, Pakistani 82% of the UK’s entrepreneurs believe their own business’s performance will be the same or better over the next year – up one New business start-ups had a drop from 6.2% in 2005 to 5.8% in 2006. However the reduction was smaller than in the comparable economies of the USA (12.4% to 10%), Germany (5.4% to 4.2%) or France (5.4% to 4.4%). Source: GEM UK Report 2006 engage | uk ISSUE THREE 2007