Tina McKenzie
FSB Chair, Policy and Advocacy
Entrepreneurship provides many with a path to financial freedom and independence. For some, it’s a long-held dream, for others, it comes after an unexpected career shift. Thanks to technology, starting a business has never been easier, and being your own boss is a strong draw. Every year, around 400,000 people choose to go it alone, but that figure needs to be higher.
The Government aims to achieve 80 per cent employment, but we’re still far from that target. Encouraging entrepreneurship might not seem like an obvious way to achieve this, but it is a crucial factor in closing that gap.
However, this isn’t just about meeting employment targets. Self-employment and business creation are vital for driving economic growth. Not only does it give people control over their futures, but it also brings fresh ideas to the market. Supporting people to build their businesses fuels local growth, creates jobs, and strengthens economic resilience.
Yet, entrepreneurs are often overlooked and face significant challenges.
To truly unlock the potential of self-employment, small businesses must receive the necessary support. This report proposes introducing new ambitious schemes to enable more people to start businesses. It’s equally important to help established businesses grow.
Inclusive entrepreneurship policies can ensure that everyone, regardless of their background, has a fair chance to start and expand their businesses, helping to reduce inequality. For instance, we find high entrepreneurial intentions amongst people from an ethnic minority background yet they often lack the support to reach their potential. Business owners from the LGBT+ community also need better resources to encourage them to go at it alone. Setting targets is also vital. We should aim for fifty per cent of all self-employed people to be women by 2035 and 250,000 additional disabled entrepreneurs by 2030.
This year FSB celebrates 50 years of supporting small businesses and the self-employed. Over the last 50 years the Federation of Small Businesses has campaigned for the current and future success of UK entrepreneurs. It’s crucial that policymakers continue to support the self-employed whether they’re starting the next high-tech firm in the city or launching a pop-up in a small village.
This report is in the first in a series of reports which provides new evidence on why people choose to be their own boss, what they need to grow and realise their full potential.