The Analysis Comment
Time for a new beginning?
One in 10 want to start a business because of the coronavirus crisis
Chris Goodfellow Founder, Box 2 Media, which runs The Pitch
Our independent research into the UK’s entrepreneurship during Covid-19 shows that, out of 2,000 UK adults surveyed, 11% said they wanted to start a business because of the crisis.
Results Around one-fifth of respondents want to start a business to give back to society. Other reasons for starting up include: l Earn extra money (47%). l Something to do (26%). l I finally have the time to start a business (21%). l Give back to society (17%). l It is my only option (16%). History shows people are likely to start
businesses during economic crises. After the 2008 recession, the number of new businesses incorporated in the UK grew by 11% to 365,600 in 2009. This figure then grew for seven successive years, according to Companies House statistics.
Further data Further interesting data from The Pitch’s survey includes: l The crisis has had a positive impact on starting up for 19% of people surveyed, who are either thinking about starting a business (7.94%), have launched one already (3.30%) or have more time to work on an existing idea (8.04%). l In terms of the city, the number of people that want to start up because of the crisis is highest in London (11.35%), Sheffield (10.45%), and Newcastle (9.52%). l 3.30% of people surveyed have launched a business already because of the crisis. That’s highest in Brighton (5.08%), Glasgow (6.02%), and Birmingham (4.95%).
June 2020
There is a new wave of side hustles being started because of the crisis. Out of the different employment types, the most likely people to have started a business because of the crisis are part-time workers (5.32%) and full- time employees (4.76%)
l Not everyone is taking action. While 12.62% of students have thought about starting up because of the crisis, only 1.94% have – the lowest of any employment group apart from parents and retired people. l The crisis has made 18.37% of C-level executives and 15.63% of senior managers think about starting up, considerably higher than entry-level staff (11.35%) and middle management (8.84%). l Of those that have been put off starting a business by the crisis, 40.76% say it is because “It is too risky, I want the security of employment” and 39.67% because they are worried about the economy. l What practical steps have people taken towards starting up? Of those that are interested, 16.25% have
started a plan of action, 11.02% have spoken to a financial adviser, 10.92% have spoken to potential customers and 9.52% have registered a company l There is a new wave of side hustles being started because of the crisis. Out of the different employment types, the most likely people to have started a business because of the crisis are part-time workers (5.32%) and full-time employees (4.76%).
Conclusion We know business is tougher than ever right
now. We also know that amazing, world-changing businesses will be built during the crisis. Every year, we see The Pitch finalists trying to solve some of
the biggest challenges we face, from mental health to tackling food waste. There is no doubt the UK’s entrepreneurs are going to step up in the wake of the coronavirus crisis too. CCR
www.CCRMagazine.com 11
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