The Hurdles Faced by UK Entrepreneurs in Starting a Business

A recent study, commissioned by Venture Planner, a business planning enterprise, has revealed the obstacles that potential entrepreneurs in the UK face when considering starting their own business. The survey, which gathered the opinions of 2,000 individuals who had contemplated venturing into entrepreneurship, highlighted the impact of the cost of living crisis as a major barrier. Nearly 40% of respondents cited this as a top hindrance, emphasizing the significant influence of financial concerns.

The survey found that a large majority of aspiring entrepreneurs do not lack market knowledge, motivation, or confidence in their abilities. However, a considerable 24% expressed apprehension about failure, while an equal percentage expressed uncertainty about where to begin. Additionally, 91% of respondents identified a lack of knowledge in creating a business plan as a significant worry.

The desire to pursue entrepreneurship also reflects a yearning for an alternative lifestyle, as indicated by 46% of respondents who expressed interest in starting a business in a different sector than their current one. Furthermore, 48% of individuals perceive their current sector as a means for financial stability but aspire to work in a field aligned with their personal interests. Meanwhile, 41% view venturing into a different sector as a means to achieve a more desirable lifestyle and work-life balance.

Venture Planner’s co-founder and CEO, Alex Clansey, remarked on the survey findings, acknowledging the numerous obstacles that thwart the aspirations of prospective business founders. Clansey underscored the platform’s commitment to providing AI-powered tools to assist entrepreneurs in overcoming these barriers and navigating the complexities of business planning and financial management.

One notable finding from the study is the prevalent need for support in various aspects of business planning, with 55% of respondents acknowledging the necessity for assistance in financial forecasting. The survey also highlighted a growing acceptance of AI technology, with 78% of budding entrepreneurs expressing willingness to consider using AI tools to generate a business plan. Encouragingly, 42% of respondents indicated that they would trust an AI-generated plan as much as or even more than one created by a human.

Venture Planner’s co-founder, Nicola McKenzie, also weighed in on the topic, emphasising the crucial role of AI in providing tailored business advice, as opposed to the generic content often obtained from online sources and social media. McKenzie stressed the value of utilizing an AI tool developed by financial planning specialists, highlighting the benefits of personalized business advice in bringing entrepreneurial dreams to fruition.

The survey’s insights underscore the multifaceted challenges faced by individuals aspiring to become entrepreneurs, shedding light on the pervasive impact of financial concerns and the allure of pursuing a more fulfilling professional path. Moreover, the growing acceptance of AI technology presents a promising avenue for alleviating these obstacles and empowering budding entrepreneurs to realise their business ambitions.