No business failure please – we’re from Yorkshire
YORKSHIRE’S failed entrepreneurs are among the most likely to dust themselves off and get back straight into the saddle, according to a Barclays Local Business survey.
The research of small business owners across the region revealed that owner/managers waited an average of just four months after their business failed before starting a new venture.
Entrepreneurs in Wales and the West Midlands were the quickest to bounce back by taking just three months before they started up in business again with the figure rising to nearly six months among respondents in the East Midlands.
Moreover, it seems that most Yorkshire entrepreneurs (90%) believe that business failure is a positive experience with more than 80% of entrepreneurs surveyed positive that they would be keen to start another company if their current enterprise went under.
Around two thirds (69%) felt that they would be less likely to make the same mistakes again, while just under a third (29%) said that business failure would leave them more risk-adverse, thereby increasing their chances of success next time around.
Nearly a quarter of Yorkshire respondents had run more than one business. Of those that had previously owned another business, 33% said that their business ended because it came to its natural conclusions while a third sold it on to someone else.
Men were more likely than women to have run another business, with 36% of those surveyed having owned another enterprise, compared to 17% of female respondents.
Women were more likely to suffer business failure due to financial problems (22% compared to 12%) than men, suggesting that business acumen does come with experience.
Amanda Shepherd, regional director for Barclays Local Business in Yorkshire, said:
“The region’s small business owners are operating in more difficult conditions at the moment, and unfortunately, as the credit crunch begins to bite, there’s a risk that some entrepreneurs will find their livelihood under threat.
“However, it’s heartening to know that their desire to ‘bounce back’ from failure is so strong.”
She added: “It takes determination, commitment and tenacity to run your own business, and these qualities clearly stand entrepreneurs in good stead if they’re forced to start all over again.”
Despite the optimism however losing a business is still considered a bitter blow. More than 35% of respondents felt that their business going under would impact them on a personal as well as professional level, admitting that it would be comparable to a relationship ending.
“No one can deny that failure hurts – particularly when it relates to a venture that you’ve put your heart and soul into,” said Ms Shepherd.
“However, the research suggests that the stigma associated with failure is on the wane, and the entrepreneurs in Yorkshire are recognising that they can emerge older and wiser from such an experience.”
