TV Shows Trigger Surge Of Business Start UpsThursday, 12th July 2007, 00:05
Category: TV, Film and Theatre
Reality TV shows such as Dragon's Den are inspiring thousands of Brits to start up their own businesses, reveals new research.
One-in-five young entrepreneurs who have started up their own companies in the last five years have been inspired by shows which see people plugging their bright ideas in the hope of making money.
And research by NatWest found that nearly 17 million Brits are harbouring a business idea, with 30 per cent planning to turn their dreams into a reality, and a quarter (26 per cent) hoping to do it within the next year.
Of those hoping to set up on their own, nearly half (43 per cent) are doing it because they want to be their own boss.
And one-in-five (19 per cent) of British entrepreneurs aged 18 to 34 who have set up a company in the last five years say that they were inspired to take the plunge by reality TV.
But 45 per cent warned that the shows made starting up look glamorous, while 32 per cent said it made striking out on your own look easy.
The motivations behind becoming your own boss include more flexible working (77 per cent), a feeling of freedom (70 per cent), and frustrations with their current employer (37 per cent), while 22 per cent said they had their 'eureka' moment at their desk.
But while wannabe Alan Sugars are not expecting to ape his massive pay packet, they expect to earn £40,000 a year from their businesses - a third more than the £28,000 earned by the average UK entrepreneur.
But only one-in-ten (11 per cent) said that they set up a business because they wanted to make a fortune.
Those working in IT and telecoms are the most likely to dream of setting up on their own, with one-in-10 (11 per cent) of self-starters coming from these industries.
But over half of these workers said that they would not want to work in these industries, and would rather set up their business in a completely different sector.
And life changing events can also be the push that people need to get started on their own.
Redundancy (30 per cent), illness (17 per cent), having children (10 per cent), and career breaks (10 per cent), were the triggers for three in ten entrepreneurs to go it alone.
But the findings also showed that almost a quarter (23 per cent) who started up in the last five years were tempted to give up on their dream, with cash flow problems and poor marketing knowledge the biggest hurdles on the road to self sufficiency.
And emotional challenges included fear of failure, stress and lack of confidence.
Steve Pateman, chief executive of business banking at NatWest, which is launching a new package to get small businesses started, said: "TV shows like Dragons Den are very new, so it's no surprise that their influence is strongest for young people.
"But while the TV might be new, the desire to go it alone has been there for a long time. The most popular motives are more personal reasons, like being unhappy in your career, and wanting a better work life balance.
"Whilst it's encouraging that TV programmes can inspire an army of armchair entrepreneurs into action, they only really scratch the surface of what it takes to run a successful business.
"Although over half aren't confident they have the skills and financial know-how to get started straight away, with advice from an experienced local business manager offered by NatWest, plus useful money saving benefits, these initial hurdles shouldn't be a barrier to getting a good business idea off the ground."
Top Five Most Popular Businesses In The Making:
Business services - 13 per cent
Internet enterprises - 13 per cent
Shops retail business - 11 per cent
Restaurant / bar - 10 per cent
Household services e.g. landscaping, interior design - 9 per cent
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