Crisis of confidence leads to over half a million business ventures going unpursued, research finds
Nearly two-thirds (63%) of small business leaders in the South West have not pursued a potential business venture due to a lack of confidence, new research by YouGov on behalf of the British Business Bank reveals.
This crisis of confidence is costing the UK over half a million potential business ventures that are not pursued.
Nationally, a lack of confidence remains a major barrier to entrepreneurship. Over four in 10 (41%) of small business leaders say a lack of self-belief was the biggest barrier to starting or growing their business. For more than a third (36%), fear of failure holds them back more than a lack of funding.
Young entrepreneurs are feeling the strain most acutely. 41% of 18-34 year olds feel they’re not the ‘right kind of person’ to run a business against an average of 30% across all age groups with 23% of the 18-34 year old cohort ‘strongly agreeing’ with the statement ‘I sometimes feel I’m not the ‘right kind of person’ to run a business’, against only 2% of over 55s strongly agreeing.
More than a third (37%) of small business leaders have delayed launching their business due to lack of confidence, rising sharply to 57% among 18-34s.
The impact isn’t merely on potential – it’s also affecting business growth as almost four in 10 (38%) of leaders have either delayed pitching to clients, or not pitched at all, due to confidence issues. The youngest are, again, those where the impact is most profound with the figure rising to 57% among 18-34s.
Business expansion plans are also being impacted, with 38% of all those surveyed having delayed or decided not to expand or scale their business due to their lack of belief.
South West entrepreneur decides to back herself
Ahlam Qattan
One entrepreneur who has overcome any self-doubt about starting her business is Cheltenham engineer Ahlam Qattan (pictured), who launched her successful sports clothing brand for women, Clover Climb, last year with the help of a Start Up Loan.
Ahlam said, “I would be lying if I said I was confident all the time or that I never had any self-doubt, but the biggest lesson is not to let it consume you. You will make mistakes, you will get things wrong and the most important part is to pick yourself up and carry on.
“Nobody starting something new has ever gotten it perfect from the get-go. Those mistakes you make will be the best lessons you will learn in business, and it will help you grow and expand in new ways. You have to believe in yourself and believe in your vision.
“Believe in yourself, back yourself, you are capable of so much more than you realise. The only difference between where you are now and where you want to be, is taking the first step.”
Louise McCoy, Managing Director of Start Up Loans Products, British Business Bank, said, “At Start Up Loans, we believe in the power of ideas and the people behind them. Confidence should never be a barrier to pursuing your dreams. We’re encouraging entrepreneurs to back themselves – and we support them with developing a pre-application business plan and post-application mentoring.
“Like in other walks of life, new business owners are often affected by imposter syndrome. This is why we connect Start Up Loans recipients with mentors and provide other post-loan support.”
The fact that confidence and belief in one’s own abilities are the biggest barrier to starting a business is why Start Up Loans is encouraging budding entrepreneurs across the UK to back themselves and to seek out sources of unbiased support.
For more information on setting up a business, Start Up Loans has updated its Business Resilience Guide, available to download for free here: Guide to Business Resilience | Start Up Loans
Pictured: (top of page) Louise McCoy, Managing Director of Start Up Loans Products, British Business Bank
