So what type of person is likely to start a business today? Well, last available government statistics on business startups revealed that the average entrepreneur is white, male, aged 36, lives in the south east, is involved in the construction industry, educated to degree level and with previous work experience in the same sector as their business.
However, the above facts don’t necessarily offer a true reflection of entrepreneurial trends in the UK. For example, while men are still twice as likely to start a business the gap is rapidly narrowing and closed by more than 40 per cent in 2002.
For a better indication of what type of people are starting up businesses, here’s a look at the statistics and trends for each characteristic of the entrepreneurial make-up:
Age
The average age might be 36, but there is actually little difference in age between the 18 per cent of the working population aged 16 to 65 that are self-employed. Indeed, 23 per cent of entrepreneurs are aged between 45 and 54.
According to research by Barclays Bank, new businesses run by the over-50s are growing in number and looks to continue in line with the UK’s ageing population.
Starting a business is being promoted as a viable career option for young people more than ever before, but statistically, while this sector is likely to grow in the future, young people are more likely to consider starting up as a sideline venture or as a something to do later in life.
Despite this, one in ten current entrepreneurs are aged 16-24.
As mentioned above, men are twice as likely to start a business as women – but female numbers are quickly catching up. In 2002, the gap narrowed by 40 per cent in 2002 and with the government keen to continue more women in business, there’s every indication the trend will continue.
But for now, the UK remains near the bottom of global rankings when it comes to the ratio of male versus female startups. When compared to 29 developed countries, the UK currently ranks a lowly 26th.
For more detailed analysis of gender statistics, consult our Women in Business section.
Educational background clearly has a large impact on entrepreneurship and rising levels of education can be associated with higher relative rates of enterprise activity. However, a significant minority – 5.5 per cent – has no educational qualifications whatsoever.
Half of active entrepreneurs have previously worked in the sector they start a business in.
According to the Small Business Service, every ethnic minority group is less likely to start a business in the UK than the white population. However, there is a higher number of Asian self-employed people than non-ethnic entrepreneurs as government statistics classify Indian, Pakistani / Bangladeshi and Indian entrepreneurs in separate ethnic groups – together they account for 45% of UK entrepreneurs.
What’s more, ethnic groups, especially the black population, are more likely to be thinking about starting a business than the country as a whole. Sadly, the reason many people from ethnic minority groups are only thinking of starting-up could be because of discrimination; 38 per cent of non-white business owners say they have experienced discrimination of which 90 per cent was racially motivated.
In 2002 London boasted the largest number of new businesses, followed closely by the South East. In fact, these two regions accounted for around 40 per cent of startup businesses.
However, while still dominant, the number of businesses started in London was actually down on 2001's figures while all other regions in England showed increases. So while, the north south divide still exists, it's not widening.
Government initiatives to decentralise entereprise funding means there should be greater support for entrepreneurs outside of the South East in coming years.
Unsurprisingly, the differing attitudes of entrepreneurs aren't recorded - but perhaps they should be. Regardless of your age, background, sex or ethnicity your success an entrepreneur is likely to be down to your attitude to business.
If you're determined, prepared to make personal sacrifices, have the ability to plan ahead and take on board advice while remaining focusing on your goal and also, of course, have a decent business idea you'll have every chance of success wherever you're from and whatever age you are.
