Entrepreneurship is ‘a management style that involves pursuing opportunity without regard to the resources currently controlled. Entrepreneurs identify opportunity, assemble required resources, implement a practical action plan, and harvest the rewards in a timely, flexible way’ (Harvard Business School).
According to The Global Entrepreneurship Monitor (GEM), the largest single study of entrepreneurial activity in the world, Entrepreneurship in the UK is increasing. In 2012 Total early-stage Entrepreneurial Activity (TEA) in the UK was 9% compared to an average of just 6% between 2002 and 2010. This relates to people between 18 and 64 who are either a nascent entrepreneur, or owner-manager of a new business. The rate of nascent entrepreneurship alone in the UK has risen from 3.3% in 2001 to 5.3% in 2012.
The GEM report also illustrated that in 2011, for the first time since recording began in 1999, over 20% of the working age population in the UK either expected to start a business in the next three years, were actively trying to start a business, or were running their own business.
This rise could perhaps be due to the recent high numbers of unemployment leading many to start their own business, rather than struggle to find employed work. In 2012 for example, 18% of those surveyed by GEM stated their reason for being involved in TEA was due to there being no other option for work. In 2011, this number was lower at 11%.
One of the main reasons that the percentage of entrepreneurs still remains low however is fear. In 2012 36% of people surveyed by GEM indicated that fear of failure would prevent them from starting their own business.
Aston University, UK business start-up expectations and activity rose to new highs in 2011