A recent study found that 8 out of 10 startups involve friends or relatives of the founder in the early stages. The majority of entrepreneurs prefer to hire people they know well rather than taking the risk of hiring unsuitable candidates. The study also revealed that young people, particularly those between the ages of 18 and 34, are more likely to start their own small businesses compared to other age groups.
In fact, almost 69% of new businesses established in the past five years were started by individuals in this age range. The study further highlighted that 27 years old is the age at which Britons are most likely to venture into starting their own company.
Gary Turner, co-founder of Xero, the company that conducted the study, acknowledged the challenges faced by small business owners while appreciating their passion and determination to turn their dreams into reality. However, he emphasized that passion alone is not sufficient for success.
The study showed that small businesses with well-thought-out business plans and effective processes have higher survival rates compared to those that neglect these aspects. Turner encouraged entrepreneurs to ensure they have the right provisions in place to maximize their chances of success and not let their enthusiasm go to waste.
The study also revealed that setting up a small business is a significant accomplishment for the majority of entrepreneurs, with 9 out of 10 small business owners expressing pride in their achievements. The freedom of being their own boss, the ability to control work-life balance, and the satisfaction of doing things their own way were cited as the best aspects of starting one’s own business.
Overall, 82% of small business owners stated that they are now running the business they had always dreamed of. However, the study also highlighted the risks involved, with only 4 out of 10 businesses reaching their fifth year of operation. Additionally, 20% of startups launched without a comprehensive business plan, indicating the importance of thorough planning for long-term success.
