A new survey suggests that the UK could be on the brink of a self-employment boom as one in two UK adults say they have plans to start a business.
New research from Intuit QuickBooks indicates that 2025 could be a pivotal year for self-employment growth, with a potential surge in entrepreneurial activity on the horizon. Its poll of 3,000 UK adults in the UK has found that (52%) of respondents are considering launching a business in the next year.
Self-employment numbers have been in decline since 2020 (down from 5 million in 2020 to 4.3 million in 2024). The findings indicate a potential turning point and the report suggests that Brits are ready to "redefine entrepreneurship" - embracing side hustles, leveraging digital tools and seeking financial independence to navigate current economic challenges.
Many of those polled are keen to keep their day job and add a side hustle to increase their take-home pay (38%). For nearly seven in ten respondents (68%), the stability of a regular income is too good to pass up. Other perks, like workplace benefits and the security of a retirement plan, are also valued highly. Running a business as a side hustle gives freedom and stability to pursue business dreams without huge financial risk.
"The findings highlight an exciting shift in the UK entrepreneurial landscape, with a renewed focus on self-employment and side hustles. Starting a business doesn't have to be complicated or costly, people just need the confidence. Our aim is to support entrepreneurs on their journey of turning their dreams into reality in 2025." Rob Burlison, director of international corporate affairs, Intuit QuickBooks.
Online sales and AI are providing key opportunities it seems, with 44% of current business owners aiming to expand their ecommerce efforts and 25% planning to adopt AI-powered tools in 2025.
Start-up costs
Potential roadblocks for would-be entrepreneurs include cash and confidence. More than four in ten respondents (43%) say they would consider starting a business if they had more money, and 40% say they would start a new enterprise if they had more confidence in their business ideas. The research finds that average start-up costs begin at just £3,000, with one in ten businesses starting with zero investment.
Many of the respondents are determined to make changes this year when it comes to their finances. In fact, the majority (62%) say they're most likely to keep New Year's resolutions that are financial in nature, like keeping a budget or saving for the future, and less likely to keep resolutions like giving up fast food or going to the gym.
Start Up Loans goes from strength to strength
The Start Up Loans programme continues to provide valuable support for entrepreneurs, according to a new independent evaluation. Small businesses backed by a Start Up Loan have higher survival rates and they are far more likely to survive their first five years (69%) than other businesses (43%).
For every £1 in economic costs of the programme, between £5.50 and £5.60 of additional Gross Value Added (GVA) is generated for the UK economy. What's more, one additional employee job was created for each loan, on average.
"That initial injection of cash is critical for any small business trying to get underway. When small firms get the chance to start up and grow, it can unleash a tidal wave of opportunity, providing jobs for local communities, boosting revenues and helping grow the economy." Gareth Thomas, small business minister.
Since the programme started in 2012, Start Up Loans has provided more than £1.1bn of start up financing to UK start up and early-stage businesses, across more than 118,000 separate loans.
Written by Rachel Miller.