As we have reported on a number of posts, the recession has done little to dampen the entrepreneurial spirit of the UK – as the rise in company formation figures in the last quarter clearly demonstrates. Historically, it was widely perceived that financial reward was the fundamental motivation for most budding entrepreneurs. However, a recent survey conducted by business angels ‘Innovate UK’ revealed that it is passion that drives most prospective business owners.
The survey revealed that of all entrepreneurs asked, over 40% cited passion for their business idea as the main reason they were motivated to start a business. 35% stated that it was the thought of being their own boss, while just 15% ranked ‘money’ as the main reason.
The survey also found that of all the potential entrepreneurs asked, many did not thoroughly understand that forming a limited company was not the only company formation option available to them.
It is important that all people considering starting their own business, thoroughly research the various ways of structuring their company. As most business starting out may not have any other employees, they could register as a sole trader, which would change the way they register for tax.