One in four would-be entrepreneurs and nearly half of all those aged under 35 are put off from starting their own business due to the perceived complexity of the process, a new study has revealed.
The finding forms part of the Great British Enterprise Opportunity report, which was recently published by digital services firm, Atos.
The latest figures show that nearly 660,000 companies were established in the UK in 2016 – an increase of around 50,000 compared to the previous year. Despite this, the research suggests that the fear of failure and financial risk involved in starting a company is restricting growth in the UK.
A major contributor of this, the report says, is the lack of a central point of contact for the 70,000 would-be entrepreneurs who choose not to set up their own business.
Likewise, there are over 1.6 million existing small businesses – especially micro-businesses consisting of less than 10 employees – which are failing to maximise their growth potential.
The report calls for a new business dashboard – which it has dubbed the ‘Enterprise Account’ – to form a central hub for would-be entrepreneurs and small businesses looking for information and advice on starting and growing their business.
Commenting on the report, Chief Executive of Atos UK and Ireland, Adrian Gregory, said: “The barriers to growth – both for individuals looking to start their own business, and small businesses looking to expand – are real and are holding the country back.
“Reducing the complexity in how young people especially, access information, advice and funds to start and grow their own business will ensure that Britain retains its entrepreneurial zeal.”
The report can be read in full here.