Despite this confidence, survey reveals the UK is not as much of a risk taker compared to the US
Over half (52%) of small business owners in the UK say they have no intention of limiting their expansion plans, a survey conducted for specialist insurer Hiscox reveals today, despite the economic downturn.
Hiscox’s DNA of an Entrepreneur study, which researched the views, attitudes and lifestyles of entrepreneurs from across five nations, found that the entrepreneurial spirit is alive and well in the UK. The majority of small business owners in professional services sectors in France, Germany and the Netherlands also state they have no plans to limit growth or avoid employing new staff, despite the prevailing economic climate. In the US, businesses are even more bullish, with 69% stating they will continue to grow their business.
Commenting on the findings, Steve Langan, UK Managing Director at Hiscox, said: “We know small businesses can be fleet-of-foot and highly adaptable in a downturn and it’s good to see that the British entrepreneurial spirit is still strong, despite the credit crunch. At a time when big businesses are announcing profit warnings, refinancing and job losses, small business owners in the UK, Europe and the US are bucking the trend. They seem determined to keep growing their business”.
The survey did however identify a number of obstacles for would-be entrepeneurs. More than two thirds (68%) of British entrepreneurs think our taxation system does not favour someone wanting to set up their own business.
Government red tape was a concern for 54% of Britons. Other nations also saw this as a concern but the US stands out as being completely the opposite: over two thirds (68%) think that government bureaucracy doesn’t create any major barriers to going it alone.
As the credit crunch deepens, financing options for new businesses will become more limited. Two thirds (64%) of British small business owners state that finding finance for a new business is not easy but the situation seems to be more acute in Germany and France, where the challenge is noted by 81% and 72% respectively.
Almost two thirds (61%) of UK entrepreneurs believe the British education system does not encourage individual ‘ideas and dreams’ which can fuel future entrepreneurial growth. This is broadly in line with the French (66%) and the Dutch (50%), while the more conservative German education system seems even more discouraging (80%). The European’s view is in sharp contrast to the US, where only 35% feel their education system is unsupportive.
Each nation’s cultural inclination (or disinclination) to take risks could have a bearing on the mindset of their entrepreneurs. In the UK, only 44% feel that, culturally, we are a nation of natural risk takers, compared to 78% of Americans. The Germans and French are, culturally, the most risk averse nations of all, with only a third (33% and 34% respectively) feeling that there is a culture of risk taking in their country.
