To ask why you may have been put off setting up a business?

[pyjamapyjama]

So I hope this isn't against Mumsnet rules, but as part of my uni course I have to take part in a debate about whether entrepreneurship is accessible. I need to argue that it isn't accessible, and one of my points is that alot of people just don't want to take the risk (financial/family responsibility, don't want to quit job, etc etc)

Have any of you ever been put off setting up a business? And why?

TIA

[raffle]

Having to pay employees pension, worked it out and it ment paying them a rubbish wage in order to cover the pension contribution. Decided not to do it.

[Eolian]

Uncertainty, unreliable income, lack of capital and also, a major factor for me, a complete lack of financial knowledge.

[RavingRoo]

I don’t have the work ethic or drive.

[makeourfuture]

If your partner is not 100% behind the decision, don't do it.

[TonicAndTonic]

I have a public sector 9-5 job so pretty far removed from entrepreneurship! I can think of loads of things that would put me off starting a business:

Fear of failure
Fear of financial insecurity/uncertainty
Not getting paid sick leave/mat leave/employer pension
Potential inability to separate work and home life
Not having sufficient work ethic to get a business off the ground (i.e. laziness )
Lack of a great business idea!

[HillsBesideTheSea]

I am going to add my agreement about tax, and small business legislation. It can be hard to find relevant information that makes it accessible without the support of a small business manager and they are more interested in getting up and going before they wish to impart this information. I want to know what the requirements are before i decide to go forwards so I can make informed choices and start with good practise, not getting the information when I am already in the middle of doing.

[LadyGardener2]

Dp started a little gardening business on the side of him working part time in a shop. The business grew so that he could quit work and grow the business more. When our youngest started full time school (I was a SAHM) I joined him and we now have a nice little business we are hoping to keep growing. However we do rely on tax credit top ups at the minute (can't wait until we don't need them!)
Tax wise, we're not earning quite enough to pay tax yet so self-assessment is pretty straight forward, though I've just worked it out myself, never been on a course etc.
Luckily we had most of the tools needed to start up, lawnmower etc and I have a Zafira so used that as a work vehicle (just recently upgraded to a van) I think had we needed to invest lots of money we couldn't have done it.

[Alittlepotofrosie]

I didn't understand the background of ruining a business ie the tax and legalities and didn't have the money to do a course to learn. In the end it was too daunting so i gave up.

[ArchchancellorsHat]

For me, I'm nervous of the tax system, i just don't know enough about the accounting i should be doing. I also have a lack of capital to invest. I'm looking to set up a side gig business to supplement a job, rather than a full time one. I don't think it's realistic to go from zero to full time. But largely it's a lack of knowledge that deters me, especially wrt taxes. Accountants are expensive

[Welshrainbow]

Not having financial capital/backing. It is just too risky. Also being self employed massively increases the number of hoops etc you have to jump through to get a decent mortgage.

[Awwlookatmybabyspider]

I'd love my own business, but I'm absolutely phobic about failure.
Not So much losing the money, but the embarrassment, I'd feel.

[pyjamapyjama]

Thanks so much for all the replies!! They've been a massive help

xx

[Jasminedes]

I am risk averse. A high percentage of small businesses seem to fail after the first year, and I don't like the odds.

[JustDanceAddict]

Ps: he’s been doing it for 7 years and he thought he’d probably have a bigger concern than he does. Very hard to get decent staff and he never listens to my advice!!!

[JustDanceAddict]

Sorry, mean to say he works all the hours, weekends sometimes, had to deal with crap employees (obv a bigger organisation you’re more supported in this) cash flow can be an issue, he finds it hard to take time off and works on holiday. He can’t really be ill (he v v rarely takes sick days unless he literally can’t get out of bed). There are advantages too like being time flexible but I could never do it!! I much prefer being employed.

[JustDanceAddict]

Dh has his own business and it’s a pain in the arse. He works

[Basecamp21]

For me it's the new universal credit rules. I have to make my business make a profit large enough to pay a full time wage within a year or they will make me get other work or stop paying any top up Ben's..

I know I can build my customer base up but probably not that much that quick. It suspect I would be 50% of the way there in a year 75% in 2 years and 100% in 3. But I am not prepared to risk my savings in investing in something an unqualified outsider could pull the plug on in a year.

I will continue as an employee until my children no longer need childcare. This will mean I will get substantially more in benefits for a longer period of time - it's crazy!!!!

[gamerwidow]

Fear and lack of support when things go wrong.
I could go freelance my profession and probably make more money but it would involve accepting a level of risk I’m not comfortable with.
Risks being no guaranteed income, no sick pay, less flexibility because in order to compete I’d need to be full time rather than part time.

[Shadow666]

I’m in the process of slowly starting my own business. I agree the phychological barrier is one of the biggest barriers. Just going from it being a vague idea to actually doing something. Making a plan, carrying out the plan. It’s so hard!

[confusedlittleone]

The financial side and time- I have 2 dc which takes up 90% of my time, so in order to successfully run a business I'd need them in nursery, but wouldn't be able to afford nursery without an income, which wouldn't come untill the business was actually up and running. But it couldn't get up and running when all my times with the dc

[CountessDraculaofGroantham]

My husband has set up a business and it’s four years old now. Year 2 was fabulous and all the things you’d expect from being your own boss, the other three have been hell on Earth, due largely to people paying late, refusing to pay the full amount owed, or not paying at all. Our income has dropped from £3k per month to about £500 but our bills have stayed the same. He works long long hours and the stress levels are immense. People piss him about, cancel at the last minute, drop him completely on a whin and expect him to work for peanuts. In the industry he’s in, at 46 it’s nigh on impossible to get a job. He tried for a long time but constantly lost out to younger people so starting up by himself was the only way forward. I wouldn’t recommend it to anyone, not unless you weren’t actually relying on the income. We’re up shit creek and can’t see any way out at the moment.

[goshthatseemsalot]

Lack of confidence. Excellent at sales in my day job. Would love to set up my own business and backed by husband but huge self doubt. I annoy myself intensely.

[Droogan]

I set up a small services business in the past, and found it quite easy and ran it successfully for a few years. Have had another go recently, and it was far far harder. In part because there is far more competition now, in part because it is really hard to reach customers when you are competing against larger competitors with money, time and savvy to put into their online presence.It used to be enough to put one ad in Yellow Pages.

[JockTamsonsBairns]

Fear. That's it really. Fear about the initial outlay required, and fear of failure. I've had a business idea for a few years now, but we're pretty much on the treadmill - mortgage, bills, two young DC's, supporting older DC through university, elderly parents, working full time with very little support network. DH earns fairly well, but has long hours, lengthy commute, and sometimes works away at short notice. I work fewer hours, but juggle the DC's, house, and life 'stuff'.
I'd absolutely love to set up my business but, most of the time, I can barely find five minutes to breathe - I can't imagine where or how I'd find the time or the money for a new business set up.

[ginplease8383]

Fear.

And not having any capital

And not knowing what to do as a business