Budding entrepreneurs are being held back by the excessive cost and complexity of incorporating a business, according to a new study.
A poll of 1,000 small business owners by @UK PLC found that nearly 60% believe the process of incorporating a company is a huge obstacle to those looking to start-up.
Over a third, meanwhile cited cost concerns as the chief inhibitor.
“These figures demonstrate the health of Entrepreneurial Britain, but also that not enough is being done to help start ups through the incorporation process,” said Lyn Duncan, managing director of @UK Plc.
“With the enormous popularity of entrepreneur shows such as Dragon's Den and The Apprentice, the will is clearly there for people to strike out on their own, but our findings show that they are held back by concerns of cost and complexity of incorporation.”
Duncan said that the government’s push to persuade unlicensed businesses to join Companies House will not succeed until entrepreneurs are “unburdened” from the cost and complexity of the process.
The survey, meanwhile, found a strong desire among companies to incorporate. Some 58% of owners polled said that incorporating their ventures gave their business more credibility.
Just over a quarter said they want to incorporate their business to reduce personal liability.
