THE GREAT REJUVENATION: NEW SURVEY SHOWS MAJORITY OF GENERATION Z ASPIRE TO BE THEIR OWN BOSS

On the eve of Small Business Saturday (3 December), new research reveals that 64% of the UK’s Generation Z (16-25 years old) workers have either started their own business or aspire to do so in 2023 – compared to nearly a third of people overall.

According to the research, published today by AAT (Association of Accounting Technicians), being their own boss and quitting to start a business are top of the agenda for Gen Z, with 20% stating that they want to start their own business so they have something of their own, followed by 16% wanting to be their own boss and 10% felt trapped in their job.

Perhaps as part of ‘The Great Resignation’ fuelled by the pandemic, which saw record numbers of people leaving their jobs, the survey of more than 2,000 UK workers showed that overall, nearly a third of UK workers have started their own business or considered doing so in 2023.  In addition, 19% of Brits felt that this was the only way for career progression and a further 18% made this move because they felt trapped in their job.

Despite this, nearly one in 10 (9%) people are put off starting a business by tax and accounting and one in five (20%) don’t think accountancy skills are important to start a business. To help address this, the small business website Informi – powered by AAT – has launched a new version of its ebook: ‘How to start a business in 20 days’, which offers advice on all aspects of getting your small business off the ground.  The site offers a huge resource of free, easy-to-understand tips, wisdom and insights on starting and running a business, from business plan templates to self-employed tax calculators.

Rob Alder, Head of Business Development at AAT, said: “The pandemic has proven to be a powerful catalyst for people to reassess their work lives, and our research shows that 2023 could be the year for many Brits to take the plunge to be their own boss. British workers are exploring the best way to take control of what they earn. However, to make sure the Great Resignation becomes the Great Rejuvenation, it’s critical that people understand their skills and strengths if they want to succeed.”

Additional research by AAT with 500 small business owners in the UK revealed that the top three mistakes when starting a business are poor understanding of the target market (30%), cash flow management (19%) and ignoring technology (19%).  The research also found:

• 93% made mistakes when starting their business
• 16% missed the tax deadline
• Over a quarter (26%) admit they have next to no accounting knowledge
• On average, small business owners didn’t hire a qualified accountant until just over a year into operating their business
• Almost two thirds (65%) wish they’d known more about accountancy before starting their business
• Advice from small business owners is create a business plan (40%), invest in market research (36%) and hire an accountant (33%)

Jo Fairley, co-founder of Green & Black’s, commented: “     Don’t be scared to start a business in a recession: Green & Black’s was born in one, and it taught me some important lessons about always being lean and hungry, agile and adaptable, and above all, not wasting money, which stuck with me ever since.  Take advantage of all the help that’s on offer from a mentor or by using great resources online such as Informi which has easy-to-understand info on every single aspect of running a business, from steering you to the most helpful TED talks to tips for handling the financial pressure.”

Jo Fairley is a success story after leaving school with just 6 ‘O’ levels and starting the famous chocolate company in the recession, before turning it into a £100 million a year business. Jo knows what it’s like to start up on your own, and has put together the following top tips:

• Don’t be scared to start a business in a recession: Many established companies do panic in a recession and put their finger on the pause button; while they’re caught like rabbits in headlights, you can power forward with fresh energy, ideas and – often – discovery of a niche that someone’s overlooked.
• Don’t expect to be good at absolutely everything, in a start-up: Green & Black’s worked in part because it was a great partnership: my husband was good at strategy and finance and operations; I took care of the PR, marketing, branding and design, which used my talent and experience as a journalist and magazine editor. I can read a spreadsheet, but it’s not my strength. The best start-ups have at least two people with complementary skills. If you’re a one-person start-up and aren’t strong on spreadsheets and cashflow and forecasts, don’t beat yourself up; the secret is to find a good accountant who can hold your hand on that side of the business. Whatever your start-up structure, it’s so important to know where you stand financially at any given time, rather than have nasty surprises!
• Always put yourself in your customer’s shoes: That applies to coming up with an idea for a business, but also – literally – how you treat your customers, who are probably the most important stakeholders in your business. My benchmark for starting my serial enterprises, from Green & Black’s onwards, has always been: ‘If I need something and it’s not out there, chances are that lots of other people feel the same.’ It’s a great starting point, and you don’t need a focus group because you can tap into your own instincts and insights.
• Take advantage of all the free help that’s on offer: That might be from a mentor, or someone you encounter who’s been there, done that, ironed the t-shirt and who can share their wisdom. But today there are also such great resources online. Informi, for instance, has easy-to-understand info on every single aspect of running a business, from steering you to the most helpful TED talks to tips for handling the financial pressure we are experiencing at the moment. I honestly wish there’d been this kind of support at my fingertips, when Craig and I were building Green & Black’s.
• Sometimes, it helps NOT to give up the day job – just yet – while starting a business: Yes, you will be working extremely hard, but that goes with the territory. And there’s a simple rule I’ve discovered: it takes much longer to get a start-up going than you think it’s going to. It happened to me every time. I liken it to a car’s ability to go from 0-60mph; the ‘flat’ bit of the curve lasts a surprisingly long time, when there’s no awareness of your brand or company, and then it starts to accelerate exponentially. If you’ve budgeted to take a chunky salary out of the business from the start, you may not find yourself with enough cash to keep the business going – but if you’ve got some kind of other income coming in, that can help see you through until you take off.
• Never overlook the importance of building personal resilience: The reason start-ups often fail is that the founders simply run out of steam. Entrepreneurs need to cultivate a blueprint for personal wellbeing that enables us to have the energy and focus to keep going, and to ride the inevitable daily/hourly rollercoaster. In my case, it’s getting my 10,000 steps a day and doing 10 minutes with my Calm app; in someone else’s case it might be running, the gym, boxing. But you should never feel guilty about taking time to look after your own mental and physical wellbeing in business, because other people rely on you (not least the ones at home.)

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BACKGROUND AND REGIONAL INFORMATION:  

The research for AAT was carried out online by Opinion Matters between 18/11/2022  and 21/11/2022 amongst a panel resulting in 2,010 UK adults (Aged 16+) & 500 Small Business Owners (Aged 18+) responding. All research conducted adheres to the MRS Codes of Conduct (2019) in the UK and ICC/ESOMAR World Research Guidelines. Opinion Matters is registered with the Information Commissioner’s Office and is fully compliant with the General Data Protection Regulation (GDPR) and the Data Protection Act (2018).