After a year of anxiety and insecurity about the year to come – and despite widespread predictions of a continued risk of recession – both business founders and employees are optimistic about their prospects in 2023, according to a new study reported on by Business Leader.
After surveying over 2,100 entrepreneurs and working professionals in the UK, the study found that 71% of business founders are more confident about their business experiencing an upward trajectory this year in comparison to the last.
The optimism is even more palpable when segmenting the data by generation. Of Gen Z business founders, 92% think 2023 will be a more promising year.
Overall, 47% of business founders believe their businesses will experience growth this year.
Again, the conviction is even more assured when it comes to Gen Z entrepreneurs – 81% believe 2023 will be a year of growth for their business.
It is worth noting, though, that there is a renewed focus on improving profitability, and 82% plan to do so by significantly increasing their prices – 42% intend to do so by up to 10%, and 21% plan to heighten their prices by as much as 20%.
74% of employees in the UK plan to start their own business
The key findings of the study also highlighted the desire for full-time workers to set up their own businesses, and 64% are hoping to have a business in the next couple of years.
In fact, business founders are so optimistic about the next 12 months that 70% would recommend starting a business immediately.
That said, some have already begun their transition. 27% of workers – or 45% of Gen Z employees – already have a secondary source of income, more colloquially known as a “side hustle”, that they are hoping will become their main source of income in time.
Being one’s own boss proved to be the biggest motivator behind launching a business, with 53% of respondents citing this as the main drive. Other motivators included regaining a sense of control (48%) and pushing themselves and their ability (37%).
Somewhat surprisingly, only 35% of respondents indicated that they were motivated to start their own business by the opportunity to make more money, showing a shift in priorities among future entrepreneurs.
Looking to start or grow your business in 2023?
When launching or growing any business, having an effective partnership with accounting and tax professionals is crucial. At TS Partners, we are experts in all aspects of business tax, payroll, startup accounts, and much more. This makes us best placed to offer you tailored services and advice that could be critical to maximising your success in 2023.
To find out more about our expert accounting services in Plymouth, Wellington, or Newton Abbot, simply get in touch with your local TS Partners office.