2017 is expected to be a record-breaking year for start-up creation in the UK, with more than 2,000 businesses established a day, according to a new study from AXA.
The research found that it takes between six and nine months for new businesses, on average, to achieve profit, with 37% relying on savings and 22% maintaining part-time work to support them during this time. Another 21% rely on support from a partner and 11% rely on state benefits or a pension.
However, the first year in business can take its toll, with 80% of respondents having considered quitting due to familial or emotional difficulties and 37% having admitted that loneliness or self-doubt had almost forced them to give up on their business venture.
33% said emotional difficulties came in the form of rows with business partners over time and money spent on their business, while 14% cited a discouraging remark from a contact or loved one as a cause of doubt.
Despite this, 87% of those surveyed said the ‘start-up blues’ were only temporary; 78% of new business owners said their family lives had improved as a result of being self-employed and 83% described their business as a success.
Just 13% of new business owners said they were still struggling with the responsibilities of running their own business.
Darrell Sansom, managing director at AXA Business Insurance, commented: “The emotional rollercoaster of starting your own business is rarely talked about. But it is very common for you or people close to you to lose faith at some point when your business is in its infancy.
“[…] Keep the faith: our research shows that those who persevere do reap the rewards of doing something that truly inspires them every day and getting a good work-life balance too.”
Source: Henry Williams - Startups.co.uk