It would take a muich higher than average salary to lure budding Birmingham entrepreneurs away from their small business dreams.
Research has found that £66,947 is the annual salary that budding Birmingham entrepreneurs would need to be paid to stop dreaming about setting up their own business; a figure which is almost two and a half times more than the national average salary.
Flexibility (29%), a better work/life balance (22%) and turning a hobby into a job (21%) are named as key motivations for starting up in the first place. The buyout price for giving up on small business dreams varies across the country, but those from Birmingham are on par with the national average (£66,739). Here’s how budding Birmingham entrepreneurs compare to those in other cities across the UK:
· Bristol £60,257
· Cardiff £61,404
· Edinburgh £52,222
· Liverpool £71,925
· London £78,953
· Manchester £66,601
· Nottingham £56,584
· Southampton £53,196
The new research from Nectar Business Small Business Awards reveals that just over a fifth of those from Birmingham believe they will set up a new business before 2021 (21%) and coffee shops seem to be the top choice. They are also likely to set up a hair and beauty salon (17%), estate agency (17%) or a modelling agency (17%).
Other findings revealed that over 40% of Brits would rather earn less cash in order to fulfil their entrepreneurial ambitions and work for themselves. Just over a quarter of UK adults (26%) would be content with a salary of £30,000 in return for working by themselves, and a further 16% would opt to make £40,000 from running their own small business employing staff.
Young people are also leading the charge; those aged 16 – 30 are 84% more likely to start up in the next five years. While crowdfunding is seen as an increasingly popular option for the millennial generation to finance a new business (14% see it as an option), traditional methods like banks and building societies (39%) and the ‘Bank of Mum and Dad’ (32%) are also still key.
Judge of the Awards, BBC Dragon and businesswoman, Sarah Willingham comments: “I’m a real champion of small business in the UK and believe that they are at the heart of our economy and our society.
“It’s encouraging to see that so many young people are keen to become entrepreneurs, but that it’s not a job exclusively for the young: nearly 1 in 10 people approaching retirement age would like to build a new business from the ground up or become self-employed in the next five years.
“The research also shows that it’s not all about money, but rather the pursuit of turning a dream into reality and finding a greater work / life balance; something which I can definitely relate to.”
Retail is the most desirable industry for aspiring business owners (12%) followed by arts and entertainment (10%) with the ever growing technology sector in third place (7%).
Speaking of technology, co-judge of the Awards and Managing Director of Nectar, Will Shuckburgh comments: “As a nation we’ve all gone digital in our personal and work lives. It’s our fantastic British innovators and tech whizzes that have helped drive this digital movement. These guys are inspiring the next generation of entrepreneurs – we’ve seen this as an emerging trend in our research and one which we expect to continue to grow; that’s why we’ve added Best Use of Tech as a brand new category to our Awards this year.”
Nectar Business has been championing small businesses for over a decade and is once again on the hunt to find the UK’s most outstanding small businesses to celebrate their achievements through the annual Nectar Business Small Business Awards.
The Nectar Business Small Business Awards are free to enter. Featuring eight categories, from Best Use of Innovation to Best Homegrown Business, all UK SMEs, social enterprises, charities and entrepreneurs that demonstrate innovative and sustainable businesses are encouraged to visit www.nectarbizhub.com/ to download an entry form. Completed forms can be returned by email or post until 10th July 2016.