UK start ups are as healthy and diverse as ever, according to a new report.
Figures contained in the 2004 Global Entrepreneurship Monitor (GEM) show that total entrepreneurial activity (TEA) remains strong in the UK, with 6.3 per cent of the adult working population involved in a business startup.
This year’s annual monitor, produced by the London Business School, shows that the number of female entrepreneurs increased significantly for the first time in 2004. For every 100 male entrepreneurs, 46 women also started their own business, an increase from 43 for every 100 men in 2003.
Young people between the ages of 18-24 proved more positive about starting up as student entrepreneurship rose from 0.9 per cent in to 2.3 per cent in 2004.
Figures also show that Black Caribbean entrepreneurs are most likely of all ethnic minorities to create a business that offers new and innovative products to its customers, at 36 per cent.
Patricia Hewitt, Secretary of State for Trade and Industry, said: "Today’s GEM survey shows that the UK is one of the most entrepreneurial countries in the world and is a better place to start and grow a business than ever before. This is due to the hard work of Britain’s successful entrepreneurs.”
Attitudes towards entrepreneurship are also changing. 35.9 per cent of people in the UK believed there were good opportunities to be had in starting up during 2004, despite a fluctuating economy, increased interest rates and an uncertain housing market.
However, a higher percentage of budding entrepreneurs still seem to fear their business plans failing, increasing from 30.1 per cent in 2001 to 32.9 per cent in 2004.
Both men and women agreed that the fear of debt was the biggest hurdle to overcome when starting up.
Hewitt said: “There are now more small and medium sized enterprises in the UK in the UK than ever before and business failures are at their lowest. But there is still much to do and I want to build on these successes and eliminate the barriers to entrepreneurship that remain.”
