Increase in number of Brits planning to start their own business this year: here are five expert tips on how to tackle it yourself

Nearly half of working-age people are considering starting their own business or starting a side hustle this year, new research shows.

Forty-seven percent of working-age Britons said they were considering the idea, up from 35 percent a year ago.

Interest in starting a business or side hustle has increased in part due to the high cost of living and stagnant pay packages, according to Enterprise Nation.

Research shared exclusively with This is Money shows that Enterprise Nation people typically expect to earn £34,000 in the first year of running a full-time business.

The men surveyed said they thought their business income would be around £37,865 in the first year.

According to the findings, women predict that their earnings from a full-time business will be almost £10,000 lower in the first year, at £28,658.

In the meantime. People considering starting a part-time part-time job said they expected to earn an average of around £5,765 in their first year of business.

Emma Jones, founder of Enterprise Nation, told This is Money: ‘What we are seeing is nothing short of a cultural shift.

‘The number of people wanting to start their own business continues to grow every year, it’s incredible.’

Research from the latest version of Enterprise Nation Startup Ambition Report found that 33 percent of respondents said they wanted to start their own business in an effort to keep up with rising costs and make money from their skills or hobbies.

Although people from all age groups are starting new businesses, the trend is most noticeable among people aged 18 to 30 and 31 to 40, the findings said.

Thirty-six percent of 18- to 24-year-olds surveyed said they were motivated to start their own business to do something they enjoy while increasing their income.

According to Enterprise Nation, 62 percent of people surveyed between the ages of 18 and 30 say they are thinking about starting their own business this year, while 51 percent of people between the ages of 31 and 40 say the same.

Across all age groups, six percent said they wanted to start their own business or side hustle because they feared losing their job within the next 12 months.

About a quarter of respondents said they weren’t ready to start their own business yet, but wanted to start one at some point in their career.

I started with a map for street food carts

Entrepreneur: Vanessa Anderson launched a digital street food map last year

Vanessa Anderson, 32, from Northampton, launched her own digital street food map, Indi Local, last year.

Vanessa, who works at a software development company in Milton Keynes, has built a digital app that tracks local food trucks and raises awareness of food-based community events in Northampton.

She told This is Money: ‘One day I found myself hungry at a certain fast food joint – and on the way home I saw a street food vendor in my local park making fresh wood-fired pizzas. If I had known, I would never have ended up at the chain!

“I asked them how I could find out where they’ll show up next and then I realized there had to be a better way.”

Investments from Milton Keynes Investment Group and funding from the UK Shared Prosperity Fund helped Vanessa invest in technology and hire a part-time social media worker, Jing Wei-Lau, who creates content on the company’s Instagram page.

Vanessa said: “As a pre-revenue start-up, everything I earn from my day job is plowed into Indi Local, but I’m happy with that for now.

‘As it grows and develops, I think it has great potential. There must be room for a small business provider that champions independent food producers over chains that can afford to advertise big money.”

The research shows that women are 59 percent more likely than men to start as an additional income in addition to their current job or caring responsibilities, compared to 49 percent of men. The age group most likely to start moonlighting was the 31 to 40 age group.

The most likely cities to see a new technology start-up were London and Newcastle-upon-Tyne, while Liverpool was the most likely place to see a new manufacturing start-up.

In Liverpool, 43 percent of people who said they wanted to start a business or have a part-time job by 2025 said they were worried about paying the bills.

In Glasgow, 41 percent of respondents said they wanted to set up a start-up because they were worried about bills, while 38 percent of people in Cardiff shared similar sentiments.

As for the potential pitfalls of starting a business or side hustle, the state of the economy was a common concern, according to Enterprise Nation.

It added: ’51 to 64 year olds were most concerned about the impact of the economy on starting a business – but also the age group most likely to say they did not know what kind of support was available to to help. ‘

Jordan Shwide, managing director of Monzo Business, said: ‘Small businesses are the backbone of the UK economy, so it’s vital they get the right support to grow and prosper.’

If you earn more than £1,000 from your side jobs in a tax year, you will need to register for self-assessment through HM Revenue & Customs.

Aspiring entrepreneurs can book tickets to attend Enterprise Nation’s StartUp Show in London on January 25 and learn how to build a business from scratch.

Five tips for starting a business

Top tips: Emma Jones is the CEO of Enterprise Nation

Emma Jones, founder and CEO of Enterprise Nation, has five tips for aspiring entrepreneurs:

1. Do your research

If it’s a food product, test it on family and friends and then bring it to a wider audience. It’s always worth researching competitors too. How do they do things, and how can you do things better or more efficiently?

In some cases it may be worthwhile to invest in market research. Is there a demand for your product or service, what would people be willing to pay for it?

Then find out if you can make enough profit to move on to the next level.

2. Create a business plan

If you haven’t already, you need to invest time in creating a business plan.

A good way to look at this is I’M OFF: idea, market, operations, finance and friends – including advisors and those who can help you along the way.

3. Start selling

Reaching a wider audience instantly without having to invest in a huge marketing budget is now more accessible than ever.

Many businesses use social commerce, sharing content and selling their products on their Instagram or Tik Tok accounts. Or this can be done through powerful global marketplaces such as Amazon, Etsy and eBay, giving you easy access to customers.

You’ll need to consider the costs, but it’s a quick way to get started without having to invest in your own digital ecommerce software initially.

Or for service-oriented companies, consider sharing your data on platforms like Fiverr or People per Hour.

4. Get paid

It sounds ridiculous, but it’s critical that processes are in place to ensure you can get paid on time.

If you have cash in the bank, you’re less likely to need expensive financing.

If you use marketplaces, the money will come in automatically, but if not, you’ll need to get used to invoicing regularly and chasing relentlessly, and using accounting software that can help with this.

5. Further training and network

Once you get assignments or work, you can start networking to expand your contacts and use online platforms to build skills.

Companies that seek advice or find a mentor often do better than those that don’t.

Joining local groups and attending events is a great way to learn and explore in the business world.