|
The degree of risk felt by those thinking of starting their onw business is wrongly inflated, deterring some from taking the next step. New research has found that a myth widespread among the public is that most small business fail within the first year. In fact, contrary to what many people think, over 80 per cent of new businesses survive their first year of trading.
The Myths Surrounding Starting and Running a Business highlights some of the myths that discourage many people from taking the plunge and starting up their own business.
The research reveals:
MYTH: It takes years to start a business from scratch.
FACT: Most businesses are established within six months.
MYTH: The rejection figure for business loan applications is significantly higher than it is.
FACT: Overall, only 10-20 per cent of applications are rejected.
MYTH: It is difficult to make an adequate living from a start-up.
FACT: People's estimate of income in their first year of trading is only half of the figure actually achieved by small businesses.
Launching a campaign to dispel the myths, DTI Minister for Competitiveness Barry Gardiner said: “Prior to entering Parliament I too started and ran a business. Before making the first step I – like others – was faced with potential concerns. Many of these turned out to be misplaced and I am glad I made that leap into business. I want many others to do the same.
“There are now a record 4.3 million small businesses in the UK – this is over 500,000 more than seven years ago. Small businesses and start-ups make a major contribution to the health of the economy, increasing jobs, productivity and prosperity, it is therefore essential that the myths surrounding starting up a new business are dispelled.”
The report can be downloaded at
http://www.sbs.gov.uk/sbsgov/action/detail?r.s=sl&type=RESOURCES&itemId=7000019270
|
