- Why are they starting up their own businesses?
- What kind of businesses are they setting up?
These are just a few of the questions you ask yourself when you begin to think about your target audience and these are the questions I am thinking now.
I know I want my product to support young entrepreneurs but why and how? I need evidence that young people are activity seeking revenue in this field and want to be apart of this niche.
So why are people setting up their own businesses?
Evidence 1- Unemployed
It has been harder than ever to get a job within the creative sector speaking as a recent graduate who struggled for a year to even get an interview within my chosen profession and even just simple retail work.
In fact “the unemployment rate for 16-24 year olds not in full-time education was 12.1%, compared to 13.1% a year ago.”
When unemployed the allowance is barely enough when deducting bills and general day-to-day living expenses so like myself a lot of people turn to their own business.
If no one is going to hire me I might as well make a job for myself.
Looking at this statistic I can focus my site on this age bracket, target the un employed and give them the skills in order to build a career for themselves and the skills to even get a job within another small business.
Evidence 2- Young entrepreneurs Under 35
In 2014 Rebecca Burn-Callander wrote an article for the telegraph about the rise in young entrepreneurs. Noting that according to the data collected from DueDil it was the under 35s who saw the highest growth in entrepreneurial activity in the UK.
“Young men are leading the charge in the start-up stakes, however. The figures show that 74pc of these new firms are run by men, while just 26pc are founded by women.” (Rebecca Burn-Callander, 2014)
This was a surprise to find out as a young woman and young entrepreneur myself that men were in the lead by quite a distance.
“According to UnLtd, a foundation for social entrepreneurship, more than 55pc of young people aged 16 to 25 now want to set up their own firm.
A report from Santander also estimated that 80,000 UK university students run a business, and a quarter of these plan to turn it into a career when they graduate.”
(Rebecca Burn-Callander, 2014)
I found this statistic very interesting that 80,000 UK university students wanted to run their own business and in fact were. I know a number of students who ran their own business to fund their tuition or simply because having a part-time job relied on a commitment to an organisation while running your own business you could work when you wanted and when you needed. It makes sense and will look more into.
- “It is amongst the 18-24 age group that individuals are most likely to think that entrepreneurship is a good career choice and that it has a high status in society (84% compared to the 75% in the next age group”
- “Entrepreneurial activity amongst people with no formal education is very high in the 18-24 year old age group (14.2%). Indeed for the 18-24 year old age group, entrepreneurial activity is twice as high in this category as it is for any other qualification level.” (Prowess, 2013)
Evidence 3- University students
“According to a recent survey, more than a quarter of students said they had either started or plan to start a small business venture while still at university.
However, only one in 10 intend to start their own business in the ‘real world’ when they graduate, with 80 per cent planning to join the ranks of an existing company.”
So why are so many not pursuing this venture?
“It seems students are daunted by the pressures of permanently setting up on their own, or do not have access to the funding or guidance to make their venture a reality.
The most common reason for not continuing with business plans was a perceived lack of experience, cited by 40 per cent of respondents.
This was closely followed by 30 per cent who said they were intimidated by a fear of failure. A further 11 per cent blamed the lack of employee benefits, while 10 per cent said it was due to lack of support and information.”
I find this statistic really important as it proves my project that young entrepreneurs are shutting up shop due to inexperience. My site will help these less fortune get those skills to pursue their ideas further.
Evidence 4- Gender- Men> Women
I came across a website about gender statistics in entrepreneurship which i found very useful. I learnt that despite the rise in women becoming entrepreneurs men still dominate this field.
This would mean that maybe my site should be more teared towards men but I would still like to target both genders and not limit it as women are on the increase in this sector and it would be great to support them through it aswell. As it also said that the reason most woman don’t pursue their idea is that they dont believe they have the knowledge and skills for it.
- “Between 2008 and 2011 women accounted for an unprecedented 80% of the new self-employed.”
- “Women account for 17% of business owners, ie. owners/ managers/ employers”
- “UK Women’s businesses have a higher churn rate (ie. more start-ups and closures). But women are less likely to attribute closure to ‘business failure’ and more likely to cite ‘personal reasons’ – which peak at age 25-34 for women.”
- “Men are now twice as likely to be entrepreneurial active as women but in 2001 were two and a half times more likely to be entrepreneurially active, ie. involved in the early stages of a new venture.”
- “10% of the female population are thinking about starting up a business”
- “RBS has calculated that boosting female entrepreneurship could deliver approximately £60bn extra to the UK economy.”
- “A third of the female population would start a business if it wasn’t for the fear of failure”
- “Amongst younger age groups, 18 to 24 and 25 to 34, female entrepreneurship is still half of male entrepreneurship, but the picture amongst students is more promising with a TEA female rate of 2.6% compared to male TEA rate of 1.6%” (Prowess, 2013)
Evidence 5- Millenials are more likely to donate
Why crowdfunding is millennials’ charitable channel
“Crowdfunding fits when and why Millennials want to give, and is appealing to entrepreneurs who know how to do it right. First, it suits their lifestyle. Eight out of 10 crowdfunding donations are made via mobile—most of them through social networks—combining two technologies that Millennials take to as naturally as breathing. In contrast, a majority of older generations say they still aren’t comfortable donating through a smartphone or social network.”
- Prowess. 2013. Facts. [ONLINE] Available at: http://www.prowess.org.uk/facts. [Accessed 5 November 2016].
- This is Money. 2015. Is the UK failing young entrepreneurs? A quarter of students will run a small venture at university – but only 10% set up on their own when they graduate Read more: http://www.thisismoney.co.uk/money/smallbusiness/article-3323489/Only-one-10-students-plan-set-business-graduate.html#ixzz4PAFh6ViZ Follow us: @MailOnline on Twitter | DailyMail on Facebook. [ONLINE] Available at:
- The Telegraph. 2014. More young entrepreneurs launch start-ups in wake of recession. [ONLINE] Available at: http://www.telegraph.co.uk/finance/yourbusiness/11133048/More-young-entrepreneurs-launch-start-ups-in-wake-of-recession.html. [Accessed 5 November 2016].
- Parliment. 2016. Youth unemployment statistics. [ONLINE] Available at: http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN05871. [Accessed 5 November 2016].