A new survey conducted by Studio Graphene revealed that the COVID-19 pandemic has inspired a wave of entrepreneurship across the UK, with one in twelve 18 to 55 year-olds launching their own business since the start of the year.
Of the 1,200 UK adults interviewed, 8% had started their own business during the pandemic, with an additional 10% either considering or in the process of doing so.
Of the number who have started their own venture, 36% said they had done so because they had identified a gap in the market for a new product of service to be provided. Meanwhile, 40% said being put on furlough or made redundant pushed them to launch their own business, while 51% said they were encouraged by seeing someone they know take the leap.
According to Companies House data, 397,135 new companies were incorporated in the UK between April and September 2020, with this number representing an almost 17% increase from the same six-month period a year earlier.
In contrast, Studio Graphene’s research also showed that 32% of budding entrepreneurs had abandoned their business dreams in 2020 because someone else had acted upon their idea before they did. Further, some 40% said they had seen a new product or service advertised that they had wanted to launch themselves, while 42% said they had taken a course or read books on how to start their own business.
Ritam Gandhi, founder and director of Studio Graphene, commented on the results, saying: “The rise of the ‘kitchen table entrepreneur’ is encouraging to see. Although 2020 has been riddled with challenges for businesses of all shapes and sizes, our data shows that there is a clear silver lining.”
“In many ways, the pandemic has created a perfect storm for entrepreneurship: huge market shifts, much more time in our own homes and a surge in furloughs and redundancies. And, a bit like the 2008 financial crisis, this state of flux has created many new opportunities for would-be entrepreneurs, so it’s positive that so many people have been inspired to act.”
“Whether these new ventures are side projects or people’s sole way of making a living, the UK’s status as a global entrepreneurial hub has clearly not faltered. In the months and years to come, I’m sure we’ll all be reading about the successful startups that were born out of the coronavirus crisis, and this should inspire many others to take the leap and start their own business.”
