October 28 ,2016 | by Hari Sri

Small businesses make profit in first year, research shows

The majority of the UK’s small businesses make a profit in their first year, according to research from Yell Business.

The research surveyed 1,500 small business owners, and found that 79 per cent of small businesses achieve profitability in their first year, whilst a further 27 per cent make a profit within one or two months.

Perks

The research also found that it takes the average entrepreneur nine months to set up their own business and make a profit.  

When questioned about the perks of being a business owner, 82 per cent of respondents said that being their own boss was the top perk, followed by choosing their own hours at 62 per cent, making their own life decisions at 52 per cent, choosing the clients that they work with at 33 per cent, and choosing the people that they work with at 27 per cent.

The survey also revealed the costs of starting up a business, with 40 per cent of business owners saying that it cost them between £1 and £1,000, whilst 17 per cent said that there were no start-up costs at all. The average cost of starting up a business was found to be £7,173.

Positives

Yell Business Marketing Director, Mark Clisby, commented: “While setting up a business can be rewarding with lots of positives, it’s important to consider the risks too.”

“However we have been told time and time again by our customers that they wouldn’t switch from following their dreams, and many say the benefits far outweigh the negatives – with more freedom, flexibility, and above all, enjoying what you do every day.”

Hari Sri

Hari is the LSBF Blog's News Editor. He manages the editorial content on the blog and writes about current affairs, SME, entrepreneurship, energy, education and emerging market news.

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