While
the credit card and current economic downturn appear to be dominating
the media these days, a recent study indicates that over half of all
small business owners remain optimistic and do not intend to change
their expansion plans.
These were the findings of ‘DNA of an Entrepreneur’, an international
study recently released by specialist insurer Hiscox. According to the
study, entrepreneurs
in most major economies are still optimistic about their growth plans;
in the US, for example, a staggering 69% of those asked responded that
they will continue with the growth plans for their businesses despite
the current unfavourable economic conditions.
Some other interesting findings seem to suggest that many entrepreneurs are still undeterred by the economic downturn:
1. Around one third for UK’s entrepreneurs (34%) responded that they
set up their own business in order to make more money that they would
working for someone else. 21% identified their desire to make their own
ideas reality as their main motivating factor.
2. US entrepreneurs are even more ambitious, with 46% setting up their own business to make more money.
3. Most Dutch and French business owners (74% and 71%) were found to
be motivated mostly by the desire to “be their own boss”, compared with
a 58% in the UK.
The survey also identified some of the major challenges faced by future entrepreneurs:
1. Tax: 68% of British entrepreneurs believe that the taxation
system in the UK does not favour those who want to start their own
business, with similar figures in Germany and France. In the US, only
40% of small business owners think that the taxation system is an
obstacle to small businesses.
2. Financing: nearly two thirds (64%) of British small business
owners state that finding finance for a new venture is not easy, with
the corresponding figures in Germany and France being 81% and 72%
respectively. In the US the situation appears to be marginally better,
with 58% saying that it was difficult to raise the initial funding for
their new business.
3. Cultural factors: in the UK, only 44% feel that culturally the UK
is a nation of natural risk takers. The Germans and French appear to be
even more risk-averse, with only 33% and 34%; these percentages are
dwarfed by the corresponding 78% figure in the US.
4. Government bureaucracy: this is the biggest issue in France, with
76% identifying government red tape as a major obstacle to setting up a
new business. This is also the biggest single worry for the Germans
(67%), with the British following at 54%. In comparison, only 32% of
Americans think that government bureaucracy was an obstacle to
entrepreneurial activity.
5. Education: according to the survey, almost two thirds of UK’s
(61%) and France’s (66%) small business owners believe that the
educational system does not promote entrepreneurial activity and ideas,
with the figure in Germany being much higher at 80%. In the US, only
35% of those that took part in the survey feel that their education
system does not encourage entrepreneurship.
Views:23
Comment on this article
Only registered users can write comments. Please login or register.
2380 Articles
