Fear of failure is the biggest barrier to starting a business for 18-24-year-olds, cited by 29 per cent of that age group, according to new research by Funding Circle and Premier Rugby’s Beyond The Pitch survey.
Of all respondents, building the right team was the single biggest challenge facing new business owners, named by 22 percent. The age distribution shows that the topic of the article hides the differences between young and old respondents.
Among 18-24-year-olds, building the right team ranked among the lowest barriers surveyed, at 18 percent. This order reverses among the 45-54 year olds, who create a group worthy of the first challenge at 25 percent, before fear of failure at 19 percent.
The study also found that adaptability, rather than a “winning mindset”, was the mindset UK adults rated as most important to success in both sport and business, by 28 per cent.
That preference differed by gender. Women are more likely to choose ethics and consistency as the most important mindset, with 28 percent compared to 23 percent of men. Men are more likely to choose the winning mindset, 17 percent compared to 10 percent of women.
The survey found that 85 percent of respondents believe that failure, whether in sports or in life, helps prepare a person to run a business. The stigma attached to business failure in the UK has been a recurring theme in the debate about the country’s startup culture.
Business outlook and failure vary by age
Only 40 percent of 18-24-year-olds described running a business as a balance of people skills and financial decision-making, compared to 66 percent of over-55s, a gap of 26 percent.
Younger respondents are more likely to describe business as being about leading and managing people, with 24 percent compared to 11 percent of over-55s.
A similar pattern emerged in the view of failure. Those aged 18 to 24 were the age group least likely to say failure builds confidence to take risks, at 41 per cent, but least likely to teach long-term perseverance, at 17 per cent compared to 35 per cent of over-55s.
The over-55s were also more likely to find workplace experience, rather than sports, as the best preparation for working under pressure, with 52 percent compared to 28 percent of 18-24 year olds.
Recruitment pressure
The finding that older business owners list team building above other concerns sits alongside a separate Department for Education survey of 1,500 employers, which found nine out of ten English businesses report difficulties filling skills gaps. That study placed 32 percent of the skills gap in small and medium-sized businesses in entry-level positions, while professional roles accounted for more than 29 percent.
At the other end of the age spectrum, a study published in December by Block and Public First reported that two-thirds of 18-34-year-olds were considering or very interested in starting a business, versus a national average of 40 percent. That report identified access to finance as the leading barrier, cited by 37 percent of respondents.
Beyond The Pitch’s analysis was based on a survey of 2,023 UK adults.
