Partner Article

?Age crushes entrepreneurial drive?

Young entrepreneurs are more likely to start a new business than their older counterparts, according to new research.

Research published by accounting software company Sage shows that more than half of older business owners said they would be unlikely to set up in business again if the opportunity arose, whereas three quarters of younger entrepreneurs would be keen to do so. The main reasons cited for the reluctance of older entrepreneurs to launch a new company are red tape, the state of the economy, and the role of government.

Development and creativity is also apparently being stifled by red tape, particularly in older companies. Although almost 80% of firms describe themselves as ‘innovative’, nearly half have said that they do not plan to release any new products of services over the next 12 months. The research suggest that an entrepreneur’s pessimism grows with the age of their company, as do the chances that technology and staff skill sets will be met with scepticism.

Jo Ray, managing director of Sage’s Small Business Division, said: “The survey does emphasise that younger companies feel more optimistic than their older counterparts. “57% of older companies believe there is too much Government red tape, compared to just 24% of younger companies. While these findings are concerning for older companies, they show that younger businesses feel more confident about overcoming legislative hurdles.

“It is vital businesses receive support whatever their age so that they can remain innovative, recruit the right people and continue to make an important contribution to the UK economy.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .