Common reasons people start a business

As someone working within the relative security of a 9-5, self-employment might seem like a strange concept. Being completely reliant on yourself for your financial future and working the required amount of hours rather than the allocated amount of hours sounds like an alluring prospect.

There are many reasons why 4.1 million people up and down the country have taken a chance on small business ownership. Whether you dream of starting an ambitious business, capable of turning over some serious money, or you're looking to build upon an already profitable side hustle, this blog is for you.

Here are some of the most common reasons to start your own business:

Five reasons entrepreneurs start a business

1. Seeking freedom

Many employees yearn for freedom — the freedom to build their schedules and their lives as they see fit. In fact, 91% of employees state remote work means a better work-life balance. So, it’s not surprising that freedom is one of the primary motivators for starting a business.

Freedom allows for the ultimate work-life balance, a balance that is becoming increasingly difficult to achieve. Being your own boss means you call the shots—you can decide where and when you work and who you work alongside.

2. A passion for their job

A love for your job can carry you far when building your business. Passion and drive can help you through the challenges when growing a business — particularly in oversaturated markets.

Passion is a big driver for leaving full-time employment and flying solo, with research finding three in five people who applied for a start-up loan with the British Business Bank did so because they were following their passion.

3. Wanting to create a legacy

Many people want to be remembered for something special from their time on this planet, and if that means designing, building and growing your own business, then it’s a viable option.

Leaving a company to your children can give you ultimate parenting satisfaction. Providing for your family is one thing, but the ability to work closely with relatives in the future can be what dreams are made of!

4. Redundancy

Industries are removing people from the security of their 9-5 workplaces through redundancy (roughly 80,000 in the three months leading up to August 2024). Many people, growing jaded by the once reliable job market and the increasingly unlikely promise of a “job for life,” are turning to self-employment to take ownership of their financial future.

While redundancy can sometimes be hard to accept, being forced to take a risk on self-employment can be the kick-start many people need. Plus, the lump sum of statutory redundancy pay can usually be put to good use when starting up a new business, further encouraging people to make the jump.

5. Struggling to survive

If you’re struggling to make ends meet with your current employment, starting a side hustle and growing it until it becomes a more profitable and fulfilling career option is a popular route into becoming a sole trader.

Although the average cost of starting a new business is £22,756, this average excludes online businesses and building an online business can be a cost-effective option for self-employment.

When starting an online business, you don’t have many overheads, including office space, employees, or even products to sell—all you need is a computer or laptop, an internet connection, and a viable professional service to offer, and you’re off!

If you’re not sure how to get started online, there are many online learning platforms to master new skills to help you build a templated website, get a marketing strategy together and get business advice. Platforms, including Google Digital Garage, YouTube, LinkedIn, and Udemy, offer all kinds of resources to help you widen your digital skill set and set you on a path to business success.

How Capalona can help you start your new business

Whatever your reasons for wanting to start your own business, it doesn't matter; what matters is that you have a solid business idea and approach it with the right mentality.

Then, depending on the type of business you’re setting up, you may need investment. Many UK-based businesses need capital to start up, and Capalona’s business loan comparison tool aims to simplify the complicated process of identifying the right financial solution for your business.

Working with UK lenders across the country, Capalona’s tool can help you quickly and painlessly identify the right funding for your business.

We help you find and compare all kinds of products, from startup loans and business grants to self-employed business loans. Compare business loans today.