Nearly half of working aged people are considering launching their own business or side-hustle this year, new research reveals.
Forty-seven per cent of working age Britons said they were contemplating the idea, up from 35 per cent a year ago.
Interest in starting a business or side-hustle has increased, in part, due to high living costs and stagnating pay packets, Enterprise Nation said.
In its research exclusively shared with This is Money, Enterprise Nation found people typically expect to earn £34,000 in the first year of operating a business full-time.
Men surveyed said they thought their first-year business earnings would come in at around £37,865.
Women forecast their first-year full-time business earnings nearly £10,000 lower, at £28,658, according to the findings.
Get going! Nearly half of working aged people are considering launching their own business or side-hustle this year, Enterprise Nation said
Meanwhile. people contemplating launching a part-time side-hustle said they expected to, on average, make around £5,765 in the first year of operating.
Emma Jones, founder of Enterprise Nation, told This is Money: ‘What we’re witnessing is nothing short of a cultural shift.
‘The number of people who want to start their own business just keeps on expanding every year, it’s incredible.’
Research from Enterprise Nation’s latest Start Up Ambition Report found that 33 per cent of people surveyed said they wanted to start their own business in a bid to keep up with rising costs and monetise their skills or hobbies.
While people from all age groups are starting new ventures, the trend is predominately being seen among people aged between 18 to 30 and 31 to 40, the findings claimed.
Thirty-six per cent of the 18 to 24-year-olds surveyed said they were motivated to start their own venture to do something they enjoy while boosting their income.
Sixty-two per cent of people surveyed aged between 18 to 30 said they were thinking of starting their own business this year, with 51 per cent of people aged between 31 to 40 saying the same, according to Enterprise Nation.
Across all age groups, six per cent said they wanted to start their own business or side-hustle because they were worried about losing their job within the next 12 months.
About a quarter of people surveyed that they were not ready to start their own business yet, but wanted to start one at some point in their career.
I started a street food van map
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 firm in Milton Keynes, built a digital app that tracks local food trucks and raises awareness about community food-based events in Northampton that are based around food.
She told This is Money: ‘One day I found myself hungry in a certain fast-food drive thru chain – and on my way home I spotted a street food trader at 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 were popping up next and that’s when I realised there had to be a better way.’
Investment from Milton Keynes Investment Group and funding from the UK Shared Prosperity Fund helped Vanessa invest in technology and take on a part time social media employee, Jing Wei-Lau, who creates content on the businesses’ Instagram page.
Vanessa said: ‘As a pre-revenue start-up, everything I make from my day job is ploughed into Indi Local, but I’m happy with that for now.
‘As it grows and develops, I think it’s got great potential. There has to be room for a small business provider that champions independent food producers over chains that can afford to pay for big bucks advertising.’
At 59 per cent, the research found women were more likely than men to start-up as a side hustle alongside a current job or caring responsibilities, compared to 49 per cent of men. The age group most likely to start as a side hustle was those aged 31 to 40.
The most likely cities to be home to a new tech start-up was London and Newcastle-upon-Tyne, while Liverpool was the most likely place to see a new manufacturing start-up.
In Liverpool, 43 per cent of people who said their wanted to start a business or side-hustle in 2025 said they were worried about paying the bills.
In Glasgow, 41 per cent of respondents said they wanted to create a start-up because they were concerned about bills, while 38 per cent of people in Cardiff shared similar sentiments.
In terms of the potential pitfalls of starting a business or side-hustle, the state of the economy was a common worry, Enterprise Nation said.
It added: ‘The 51- 64-year-olds were the most concerned about the impact of the economy on starting-up – but also the age group most likely to say they didn’t know what sort of support was available to help.’
Jordan Shwide, general manager of Monzo Business, said: ‘Small businesses are the backbone of the UK economy, so it’s essential they get the right support to grow and thrive.’
If you earn more than £1,000 in a tax year from your side hustles, you will need to register for self-assessment via HM Revenue & Customs.
Budding entrepreneurs can book tickets to attend Enterprise Nation’s StartUp Show in London on 25 January and learn how to build up a business from scratch.
Top tips: Emma Jones is the chief executive of Enterprise Nation
Emma Jones, founder and chief executive of Enterprise Nation, has five tips for budding entrepreneurs:
1. Do your research
If it’s a food product, test on family and friends and then take 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 might be worth considering investing in market research. Is there a demand for your product or service, what would people be prepared pay for it?
Then work out if that allows you to make enough profit to get through to the next level.
2. Create a business plan
If you haven’t already, you need to invest time in building a business plan.
A good way to look at this is I’M OFF: idea, market, operations, financials, and friends – which includes advisers and those who can help you along the way.
3. Start selling
Reaching a wider audience straight away without having to invest in a huge marketing budget is now more accessible than ever.
Many businesses use social commerce, where they share content and sell their products on their Instagram or Tik Tok account. Or, this can be done via powerful global marketplaces like Amazon, Etsy and eBay, which will give you easy access to customers.
You must factor in costs, but it’s a fast way to get going without having to initially invest in your own digital ecommerce software.
Or for service-based businesses, consider sharing your details on platforms like Fiverr or People per Hour.
4. Get paid
It sounds ridiculous, but having processes in place to make sure you can be paid on time is vital.
Having cash in the bank means you are less likely to have to need expensive finance.
If you’re using marketplaces, the cash comes through automatically, but if not, get used to regularly invoicing, and chasing relentlessly as well as using accounting software which can help with this.
5. Upskill and network
Once you’ve got orders or work coming in, start networking to widen your contacts and use online platforms to build skills.
Businesses that take 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 community.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
