15% of UK young entrepreneurs start a business to make a positive social difference
Millennial start-up founders seek influence over autonomy and value social impact as much as personal wealth, report claims
15% of UK entrepreneurs aged between 20 and 30 were motivated to launch a business in order to have a positive impact on the community, according to HSBC Private Bank’s 2017 Essence of Enterprise report.
Assessing the factors that led over 4,000 entrepreneurs worldwide to launch a business, the report found that the UK’s young entrepreneurs were more than twice as likely to agree that social impact was important than those entrepreneurs over the age of 50, of which 6% agreed.
The report also found that a quarter of UK respondents of all ages were motivated to start their own enterprise by a lack of career development at work, while 17% said that inventing a new technology had led them to launch their business.
However, the chance to “be their own boss” was revealed to be the biggest motivator for UK business owners; which appears to be reflected in the quality of their work-life balance, with UK respondents working 1 hour and 31 minutes less per day than the global average.
Meanwhile, the report highlighted that UK entrepreneurs are generating greater financial success than their global counterparts. The average turnover achieved by UK entrepreneurs was found to be $11.8m, compared to a worldwide average of $11.3m.
The challenges facing business owners were also explored in the report, with 34% of UK business owners feeling restricted by a lack of time in which to achieve all their goals, while 27% suggested that family commitments were a “major hurdle”.
In spite of these difficulties, the survey reported that UK entrepreneurs are expecting their businesses to grow by an average of 62% over the next five years.
Stuart Parkinson, chief of staff at HSBC Private Banking, commented: “Our research shows that, compared with older generations, millennial entrepreneurs seek influence rather than autonomy and that social impact is as important to them as personal wealth.
“It is important that we understand the challenges faced by the next generation of entrepreneurs so we can support them as they create jobs and economic growth, as well as prosperity for themselves, their families and their communities.”
Are you aged 35 or under and running a successful UK business? If you’ve generated £1m turnover and/or secured £1m in funding, you’re eligible to apply for our prestigious Young Guns Awards. Apply here now to join the Young Guns Class of 2017!