Majority of UK businesses achieve profitability in first year
82% of new business owners cite being their own boss as the top perk, followed by choosing their own hours (62%) and making their own life decisions (52%)
79% of small businesses owners have said they make a profit in their first year, according to data from the ‘Take The Leap’ survey by Yell Business.
The survey of 1,500 small business owners found that another 27% achieve profitability within the first one or two months, while the average entrepreneur takes nine months to set up their company and make a profit.
82% of respondents chose being their own boss as the top perk of being a business owner, 62% choosing their own hours, 52% making their own life decisions, 33% choosing the clients they work with and 27% choosing the people they work with.
Business owners were also asked about the cost of starting up a new business, with 17% saying it didn’t cost them anything at all and 40% claiming it cost them between £1 and £1,000. The average cost of setting up was £7,173.
2016 has already seen 500,000 new start-ups created, with a follow on survey of 1,500 consumers from Yell Business finding that 40% have considered starting up their own business. However, 61% had been prevented from doing so by a lack of money, 26% by the risk of failure and 24% because they “just don’t know how to”.
Mark Clisby, marketing director at Yell Business, said: “While setting up a business can be rewarding with lots of positives, it’s important to consider the risks too.
“However we have been told time and time again by our customers that they wouldn’t switch from following their dreams, and many say the benefits far outweigh the negatives – with more freedom, flexibility, and above all, enjoying what you do every day.”