One in twelve Britons launch their own business during pandemic
The Covid-19 pandemic has inspired a wave of entrepreneurship across the UK, new research from Studio Graphene has found.
The London-based tech developer commissioned an independent survey among over 1,200 UK adults aged between 18 and 55. It found that 8% have started their own business during the pandemic, with a further 10% considering or in the process of doing so.
Of those who have started or are starting their own venture, 36% said they saw a clear gap in the market for a new product or service due to the pandemic.
Meanwhile, 40% said being put on furlough or made redundant pushed them to launch their own business. Half (51%) said they were encouraged by seeing someone they know take the leap.
According to data from Companies House, between April and September 2020 there were 397,135 new company incorporations in the UK. This is up by over 57,000 from the same six-month period in 2019 (339,727).
Studio Graphene’s research also revealed that 32% of would-be entrepreneurs have abandoned their hopes to start a business this year because someone else had already acted on their idea.
An even greater number (40%) said that since the onset of COVID-19, they have seen a new product or service advertised that they had wanted to launch themselves. Since March, 42% of 18-55s have taken an online course or read books to learn how to start and build their own business.
Ritam Gandhi, founder and director of Studio Graphene, said: “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.”