There are more and more young entrepreneurs emerging across the UK, with the numbers having increased by approximately 25% in the last three years. However, most are not lasting long, according to new research by information services firm Experian. Close to 50% of new ventures are wound up within two-and-a-half years, with a further 20% failing after three years. However, the survival rate for start-up increases if there is an older director involved at the company aged 25 or over. Simon Street, of Experian, said of the figures, “Such strong entrepreneurial appetite amongst young people is exciting and encouraging to see, yet just one third of business start-ups with a young sole director survives for more than three years.”
The fact that, despite extremely high unemployment amongst 18 to 24-year-olds, there are still new and exciting start-ups emerging is a positive sign for the UK’s economy and should help allay fears that a generation will be ‘lost’ due to high unemployment.
Finance for the UK’s start-ups
Here at Skipton Business Finance, we appreciate that many new start-ups have exciting concepts and viable business plans, but just don’t have the appropriate cashflow at the start to give them the best chance to succeed. However, invoice finance could be the perfect solution to help give start-ups a boost, which works to unlock the money you have tied up in unpaid invoices. Why not check out our page on the specialised finance facilities we can offer to start-ups, or find out more about invoice factoring or invoice discounting and how it can help your business.