Barclays research reveals SME motives

RESEARCH from Barclays has revealed the main reasons why SMEs decide to go it alone.

The main driver for small business owners is to be their own boss, with over half (54%) stating they wanted to work for themselves.

Being made redundant from previous employment inspires 20% of SME owners. Twice as many men said redundancy was the impetus to start their own business (23%), compared to women (11%).

Turning a hobby into a business is a key driver for 16% of small business owners while family members and friends influence one in 12 small business owners (8%).

More women are encouraged to start a business based on a childhood dream (11%, compared to men 6%).

Interestingly, older age groups seem to be more inclined to work for themselves with the 55+ age group being inspired to start their business because they wanted to work for themselves (56%).  

This is also high among the 35-54 age group (43%).

Ray O’Donoghue, MD for Barclays in the Midlands, said: “January is a popular time for new business plans to be made, and many making New Year’s resolutions may decide to take the plunge and start their own business.

“Being their own boss is the biggest driver when it comes to setting up a business but a change in employment circumstance is also a motivation for people to start a company.”