Simply Business

March 28, 2011 15:01 ET

Study Shows Changes to Britain's Entrepreneurial Landscape as Younger Business Owners Enter the Market

LONDON, UNITED KINGDOM--(Marketwire - March 28, 2011) - A recent study of 160,000 of Britain's small businesses shows a notable change in the composition of Britain's entrepreneurial landscape. The average age of UK small business owners fell due to an increase in the number of young people starting up their own businesses.

These findings were based on analysis conducted by Simply Business, the UK's leading small business insurance broker.

Simply Business compared data from 2007 to 2010 and saw a 6.5% increase in business owners aged 25-34 in the last three years.

Regional changes were even more marked – London saw a 14% increase in business owners aged 34 and under; and Scotland and the North East saw an 11% increase.

Jason Stockwood, CEO of Simply Business, said,

"This data shows that young people are adapting to a challenging employment landscape by taking their destiny in to their own hands and starting a business. Last year David Willetts, the Universities Minister, suggested graduates were thinking more and more about a start-up as an alternative to a graduate scheme. Our data supports this view; it's a really inspiring picture."

"More recently we were pleased to see the Budget announcements taking steps to support our budding entrepreneurs. We're encouraged by the introduction of a 'regulation holiday' for businesses in their early years, as new firms need nurture and support in their early years to help them go on to become successful businesses and employers of the future. Similarly the introduction of 21 Enterprise Zones also provides a real opportunity for encouraging start ups."

Key Facts based on 2007-2010 data :

Age

Among UK small business owners, the fastest growing age group over the last three years have been 25-34 year olds, with an increase of 6.5%. Closely followed is the 18-25 year old age bracket, which has grown by 4.2%. 

Business Types

The younger start-ups are affecting the types of businesses which dominate the small business/ self employed trades. More professional and creative industries, such as management consultants, advertising and marketing executives and design experts, are moving up the rankings of small business trades in the UK.

Location
  • This pattern has been seen in every region of the country but is most pronounced in London, which over the last three years saw a 14% increase in owners aged 34 and under and a decrease of 11% in owners aged between 35- 64.
  • The North East and Scotland saw the next-biggest rises, with an 11% increase in small business owners aged 34 and below and a decrease of 9% in owners aged between 35- 64.
  • Nationally, the proportion of small businesses owned by 18-25 year olds has risen by 4%, although interestingly, Wales saw a 5% increase in this group.

Jason Stockwood, CEO of Simply Business, is available for comment and interview. To arrange to do so or for further information, please see contact details below.

Simply Business is the UK's leading insurance broker for small businesses. 

Launched in 2005, the full-service insurance specialist identified a need to improve insurance offerings for the UK's millions of small businesses whose needs were neglected by established insurance and broking companies. Where the traditional broking model was slow-moving and inflexible, Simply Business developed an agile and online brokerage service which was able to deliver bespoke policies tailored to their individual and often very specific requirements. Its online offering is supported by a dedicated, UK-based team of insurance specialists who provide a tailored and personal service more commonly associated with broker relationships. 

Today, Simply Business insures over 165,000 small business customers, more than any other UK broker. It has been a Sunday Times Tech Track 100 company for the past three years and was recently named in the Deloitte Technology Fast 500 EMEA. With offices in London and Northampton, it employs over 140 people. Simply Business revenues have grown 44% a year from £4.2 million in 2006, to £12.5 million in 2009.

Data  
   
Small business owners are getting younger...  
   
Age of policy holders 2007   2008   2009   2010   2007-2010 Comparison  
18-25 2 % 3 % 4 % 6 % 4.2 %
25-34 21 % 24 % 23 % 27 % 6.5 %
35-44 34 % 32 % 31 % 31 % -2.9 %
45-54 27 % 26 % 26 % 23 % -3.6 %
55-64 13 % 13 % 13 % 10 % -2.9 %
65+ 3 % 2 % 2 % 2 % -1.3 %
                     
Regional breakdown...  
   
2007 Vs. 2010: increase (+) / decrease (-) 18-25   25-34   35-44   45-54   55-64   65+  
EAST MIDLANDS 5 % 5 % -4 % -1 % -3 % -2 %
GREATER LONDON 3 % 11 % -5 % -6 % -3 % -1 %
NORTH EAST 6 % 5 % -3 % -5 % -2 % -1 %
NORTH WEST 4 % 5 % -2 % -4 % -2 % -1 %
SCOTLAND 5 % 6 % -2 % -2 % -5 % -1 %
SOUTH EAST 4 % 6 % -1 % -4 % -3 % -1 %
SOUTH WEST 4 % 6 % -4 % -2 % -3 % -1 %
WALES 5 % 3 % 0 % -2 % -5 % -1 %
WEST MIDLANDS 4 % 4 % -3 % -2 % -2 % -1 %

Contact Information