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Almost half of working-age people are considering launching their own business or doing something on the side this year, new research reveals.
47 percent of working-age Britons said they were contemplating the idea, up from 35 percent a year ago.
Interest in starting a business or side hustle has increased, in part, due to high costs of living and stagnant pay packets, Enterprise Nation said.
In its research shared exclusively with This is Money, Enterprise Nation found that people typically expect to earn £34,000 in the first year of running a business full-time.
The men surveyed said they thought their trading profits in the first year would be around £37,865.
According to the findings, women predict their full-time trading earnings in the first year will be almost £10,000 less, at £28,658.
Get going! Nearly half of working-age people are considering launching their own business or doing something on the side this year, Enterprise Nation said.
Meanwhile. People thinking about launching a part-time side hustle said they expected to earn, on average, around £5,765 in the first year of running.
Emma Jones, founder of Enterprise Nation, told This is Money: ‘What we are witnessing is nothing less than a cultural shift.
“The number of people who want to start their own business continues to increase every year, it’s incredible.”
Research the latest from Enterprise Nation Start-up ambition report found that 33 percent of people surveyed said they wanted to start their own business in a bid to keep up with rising costs and monetize their skills or hobbies.
While people of all age groups are starting new businesses, the trend is predominantly seen among people aged 18-30 and 31-40, the findings stated.
Thirty-six percent of 18- to 24-year-olds surveyed said they were motivated to start their own business to do something they enjoyed while increasing their income.
Sixty-two percent of people surveyed ages 18 to 30 said they were thinking about starting their own business this year, and 51 percent of people ages 31 to 40 said the same, according to Enterprise Nation.
Across all age groups, six per cent said they wanted to start their own business or work on the side because they were worried about losing their job in the next 12 months.
About a quarter of people surveyed said they were not yet ready to start their own business, but wanted to start one at some point in their career.
I started a map of street food vans.
Entrepreneur: Vanessa Anderson launched a digital street food map last year
Vanessa Anderson, 32, from Northampton, launched her own digital street food map, Indi Local, last year.
Vanessa, who works at a software development company in Milton Keynes, created a digital app that tracks local food trucks and raises awareness of food-based community events in Northampton that revolve around food.
She told This is Money: ‘One day I found myself hungry at a certain fast food chain and, on the way home, I saw a street food trader in my local park making fresh wood-fired pizzas. If I had known, I would never have ended up in the chain!
“I asked them how I could know where they would appear next and that’s when I realized there had to be a better way.”
Investment from Milton Keynes Investment Group and funding from the UK Shared Prosperity Fund helped Vanessa invest in technology and hire a part-time social media employee, Jing Wei-Lau, who creates content on the Instagram page of the company.
Vanessa said: ‘As a pre-revenue start-up, everything I earn from my day job goes into Indi Local, but for now I’m happy with that.
‘As he grows and develops, I think he has great potential. There has to be room for a small business supplier that champions independent food producers over chains that can afford to pay big money on advertising.’
At 59 per cent, the research found that women were more likely than men to start a parallel activity to a current job or caring responsibilities, compared to 49 per cent of men. The age group most likely to start as a secondary activity was 31 to 40 years old.
The cities most likely to host a tech startup were London and Newcastle-upon-Tyne, while Liverpool was the most likely place to see a manufacturing startup.
In Liverpool, 43 per cent of people who said they wanted to start a business or do something on the side in 2025 said they were worried about paying the bills.
In Glasgow, 41 per cent of respondents said they wanted to start a new business because they were worried about bills, while 38 per cent of people in Cardiff shared similar sentiments.
In terms of the potential risks of starting a business or doing something on the side, the state of the economy was a common concern, Enterprise Nation said.
He added: ‘People aged 51 to 64 were the most concerned about the impact of the economy on startups, but also the age group most likely to say they didn’t know what kind of support was available to help. ‘
Jordan Shwide, CEO of Monzo Business, said: “Small businesses are the backbone of the UK economy, so it is essential that they receive the right support to grow and prosper.”
If you earn more than £1,000 in a tax year from your side hustles, you will need to register for self-assessment through HM Revenue & Customs.
Budding entrepreneurs can book tickets to attend Enterprise Nation’s StartUp Show in London on January 25 and learn how to build a business from scratch.
Top Tips: Emma Jones is the CEO of Enterprise Nation
Emma Jones, founder and CEO of Enterprise Nation, has five tips for budding entrepreneurs:
1. Research
If it’s a food product, test it on family and friends and then bring it to a wider audience. It’s always worth researching competitors too. How do they do things and how can things be done better or more efficiently?
In some cases, it might be worth considering investing in market research. Is there demand for your product or service? How much would people be willing to pay for it?
Then, find out if that allows you to make enough profits to advance to the next level.
2. Create a business plan
If you haven’t already, you should invest time in putting together a business plan.
A good way to look at this is I’M OFF: Idea, Market, Trading, Finance and Friends, which includes advisors and those who can help you along the way.
3. Start selling
Reaching a wider audience immediately without having to invest a huge marketing budget is now more accessible than ever.
Many businesses use social commerce, where they share content and sell their products on their Instagram or Tik Tok account. Or this can be done through powerful global marketplaces like Amazon, Etsy and eBay, which will give you easy access to customers.
You have to keep costs in mind, but it’s a quick way to get started without having to initially invest in your own digital ecommerce software.
Or for service-based businesses, consider sharing your data on platforms like Fiverr or People per Hour.
4. Receive your payment
It sounds ridiculous, but it’s vital to have processes in place to ensure you can get paid on time.
Having cash in the bank means you are less likely to need expensive financing.
If you use marketplaces, the cash comes automatically, but if not, get into the habit of invoicing regularly and chasing relentlessly, as well as using accounting software that can help you with this.
5. Skill and Network Improvement
Once you receive orders or work, start networking to expand your contacts and use online platforms to develop skills.
Companies that follow advice or find a mentor often do better than those that don’t.
Joining local groups and attending events is a great way to learn and explore the business community.
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