Business Start-Ups on the Increase due to Rocky Job Market

The jobs market is still distinctively rocky and a more stable future is not looking likely any time soon. This has led an increasing number of people to head out on their own, start-up a business and become entrepreneurs. Are these just brave people taking a chance in life or is the entrepreneurial path one that more of us should be following?

When employees felt fairly stable in their chosen careers  becoming an entrepreneur was seen as a risky move. However, if you've already been made redundant, setting yourself up in business could give you the opportunity you need. There's no to risk to your job if you've already lost it.

The Increase in Business Start-ups….  Entrepreneurs

2012 was the year of the start-up enterprises, with the first increase in the number of new small businesses since 2008, according to the Centre for Policy Studies. Does this mean that we're heading towards a society of brave entrepreneurs? Research from the Global Entrepreneurship Monitor indicates that we could be, with 20% of working-age people seriously thinking of starting up their own business.

In 2011, 7.3% of people started their own business, an increase from the 5.7% of 2009.

The Government Wants to Help

To help facilitate this entrepreneurial spirit, the government has created a number of schemes to provide better and easier access to financial assistance. They've allocated a total of 100m to help small businesses and also offer tax incentives for both investors and business owners.

Tax relief is available for companies that spend money on certain research and development (R&D) projects. This can help smaller businesses reduce their Corporation Tax liabilities by offering relief on up to 200% of the associated costs. There is also a new scheme that comes into effect from this April which will allow some businesses to pay a 10% rate of Corporation Tax. The Patent Box Scheme will see profits from projects related to intellectual property and patented inventions being subject to the lower rate of tax.

The government is encouraging investors to finance new entrepreneurs. 

The Seed Enterprise Investment Scheme offers tax relief to investors who buy shares in fledgling companies. This is designed to help the newest and smallest businesses generate finance in the very early stages.

Innovative Finance Opportunities

One of the main drivers of this new entrepreneurial spirit is the range of ways people can now finance their businesses. With banks not lending as much or as easily, these entrepreneurs have had to be even braver and more innovative in the way they raise money. One of these is through crowd funding. These are mainly internet-based schemes where new companies can sell shares to a number of different investors to raise funds. It helps to encourage those who have great ideas, but often lack the funds to take them forward.

You still need a certain element of bravery to go it alone in the business world. However, these forerunners of the new entrepreneurial society could give the economy the boost it needs and encourage more people to set up businesses.

Brave Start Entrepreneurs – Business Start-ups 

Written by Andrew Pringle of Circle Square Talent