A recent survey by EY has confirmed what we, at eLab, already knew - entrepreneurs represent a vital part of innovation and growth in the UK as they form the business leaders of the future.
In stark contrast to just a couple of short decades ago, it’s estimated that one in ten people in the UK are either self-employed or running their own business. As young people delay buying property and starting a family until later in life, more and more are able to risk branching out on their own.
The 2018 Fast Growth Tracker survey, set out to pick the brains of entrepreneurs and start up managers in order to discover what makes them tick and, the issues that they face as barriers to their success.
Get your money
As you would expect, one of the major barriers for entrepreneurs is funding - particularly for those going into business with a physical product. Of those surveyed, 66% confirmed that they hoped to raise capital within the next 12 months either via ICOs, crowdfunding or more traditional methods such as equity financing through venture capital companies. 75% of those claim that they expect to raise at least £1 million of funding through one of these methods. When it comes to funding, age is often an issue - these days, many entrepreneurs are in their twenties - meaning that they have little credit history and, therefore, struggle to secure funding by traditional methods.
Take it or leave it
Surprisingly, many UK respondents see Brexit as a positive thing for their business, with over half saying that, whichever deal (or no deal) is secured, they expect their business to grow by 50% or more over the next year as the UK prepares to leave the European Union. In fact, when it comes to Brexit, many of these start ups have a distinct advantage - being very young companies, their founders have been able to plan for Brexit-related change from the very outset, putting them in a stronger position than many large, established companies. The majority of those surveyed, stated that, although it is a concern, it’s not something they’re worrying too much about - most say that there are many more pressing matters that they are dealing with such as cash-flow, funding, staffing and marketing.
Britain’s got talent - but not enough
45% of those surveyed stated that they struggle to source the right - and enough - talent for their business. This is particularly prevalent within the technical sectors, despite the surge in UK university students choosing STEM (Science, Technology, Engineering and Maths) related subjects. Respondents in the EY survey suggest that there’s still much work to be done in these sectors in order to create sufficient pools of talent.
At eLab, we understand the issues and challenges faced by today’s entrepreneurs. From sourcing funding to finding the right work space, our courses are designed to guide the new entrepreneur through the various hurdles and barriers to success. Based in London and Berlin, our courses include business models and planning, real-life advice and support and inspirational talks by successful business owners.
The results of the EY study show that today’s entrepreneurs are ambitious, talented and resourceful, no matter what setbacks they may face and, we are delighted to be able to use these results to ensure that our courses are on target and on point for every one of our participants.