As UK inflation hits a 40-year high, a need for additional income means that more and more people are starting their own businesses.
The number of people setting up their own businesses in the UK skyrocketed in the past 12-18 months and this was largely driven by redundancies and furloughing during the pandemic. Now, as the cost of living has risen so dramatically, a further wave of entrepreneurs are starting businesses in order to generate some extra income. Helpfully, according to a recent survey, the UK is considered one of the best places for entrepreneurs to start a business thanks to its skilled workforce, tax and legal systems.
The current wave of new entrepreneurs creates opportunities for other businesses that can help startups to get up and running, then grow and develop their new ventures. New technology such as online payment systems, digital marketing tools and free online resources are helping to remove the traditional barriers in setting up your own business. As a result, firms providing online and cloud-based finance and business management systems are thriving as they are geared towards serving tech savvy small and medium sized owner-managed businesses.
Sustainability is a key trend among the small and medium-sized business community in the UK. According to a recent report from the Federation of Small Businesses, 56% of small businesses believe the world is facing a climate crisis and 36% have a plan in place. Entrepreneurs are seeking out innovative solutions to becoming carbon neutral, not just in terms of switching to green energy and transport, but also mitigating the hidden environmental cost of doing business online by offsetting website emissions. Sustainability is clearly being taken seriously by entrepreneurs and if you intend to sell your products or services to them, sustainability should be at the top of your agenda too.
Whilst quitting your day job to start a completely new business is probably not the best idea during a cost-of-living crisis, it is easy to see the appeal for those who have the capacity to start a new venture alongside their current employment. The financial security of a full time job, and the minimal initial outlay involved on online-based and ‘kitchen table’ businesses means that for those who have time and capacity to spare, these can be a viable way to provide much needed extra income. Entrepreneurs will have to read the room though, and be sure that the service or product they hope to sell is something that cash-strapped households will spend money on. It’s probably not the right time to start up a luxury goods brand, but a business which provides reduced price but high quality services and products could potentially do well in this market.
