Some research out today might be of interest to those of you thinking of striking out on your own or just for some due diligence stats on entrepreneurial businesses.
The study from global information services company Experian
found the number of young entrepreneurs starting up their own businesses has risen by 22 per cent in the past three years. However, 45 per cent of these are wound up within two years.
It said the survival rate for these start-ups increased if the business had an older director on board. When a director aged 16-25 teams up with another aged 26 or older, 39 per cent of start-ups survive beyond three years, it found. “With young directors often lacking the experience, capital and contacts needed to survive those first few tricky years, our research shows that they shouldn’t underestimate the value in partnering with an older director,” said Simon Streat, managing director of the company’s SME business.
It also discovered – perhaps unsurprisingly – that younger directors are less risk averse, being 57 per cent more likely to start up a business in a vulnerable sector. These include construction, retail and hotel/catering. And it seems those in the East Midlands are the most game, with the highest increase in the number of young directors setting up their own businesses.
Experian also issues advice for young start-ups including the importance of checking the financial position of suppliers and customers; knowing your sector and understanding the dynamics of your geographical region. All sounds like the day job of procurement professionals – so if you’re looking for a change, could this be it?