May 23, 2024

How Entrepreneurialism Can Drive the UK’s Economic Recovery

Entrepreneurs spot gaps and opportunities. What sets them aside is that they have the drive, energy and ambition to turn those opportunities into successful business ideas. What they often lack is the right guidance and expertise to make it happen.

According to Companies House, there were 672,890 new companies registered in 2018 to 2019, the highest number of incorporations since for the year ending 2010. There’s clearly an appetite for those who want to go it alone.

With recent ONS figures revealing that 730,000 people have become unemployed since March this year, those looking for new opportunities may have to explore new ways of earning money.

With that in mind, Paul Beach, Head of Executives and Entrepreneurs at Arbuthnot Latham gives his perspective on the leading role entrepreneurs can play in driving the UK’s economic recovery.

Education is key

We think that it is important to connect the right people with each other. Meeting others isn’t just a great way to make business connections, but it’s also important to understand changes and developments as other people see them, in their own industry. The most successful entrepreneurs don’t just look at what’s in front of them, but also further forward. We see ourselves as a trusted partner from the early stages, up to exit and beyond.

Spotting the opportunities

Entrepreneurs need a bank which shares their mind-set, who embraces innovation and creative thinking. One of the first areas to suffer in times of economic uncertainty is the property market. Over the past few months, surveyors were unable to get into properties, few reliable valuations could be made and of course, government restrictions played a significant role too. But with the easing of lockdown measures expected next month, and the stamp duty holiday due to end in the spring, we are seeing a lot of pent-up demand.

Within this pent-up demand are individuals applying for business-to-residential planning permission. We’ve known for a long time that the high street is suffering, but we’re seeing those with an entrepreneurial mind-set reshape our high streets. Town and city centres will inevitably change, but more people will live there, different types of outlets will emerge. As social distancing measures are reversed, there is a real opportunity for different types of businesses to set up shop in our urban centres, and turn shopping centres into social centres, offering shoppers just as much and more.

The big pivot

While many are seizing opportunities, we have seen so much forced entrepreneurialism too. Businesses have had to change their entire model. This might be a restaurant moving to home delivery or an online retailer stocking different items to meet demand; it often means more work, lower margins and trying to anticipate the next change and how to evolve. Whether people want to change their business models or not, times like these, such extraordinary times, evoke changes in thinking and awaken a more entrepreneurial approach.

It is this mind-set that the UK needs to start driving economic growth and making sure home-grown entrepreneurs have the right support is crucial to powering the UK’s economic recovery.