Britain's entrepreneurs seek independence

Britain's thriving small business sector is largely driven by the widespread compulsion to work independently, according to new research.

Some 17 million adults in Britain have an idea for a new business, and 30% of these intend to make it a reality. A quarter believe that they will act on their entrepreneurial ambitions before the end of the year, NatWest has found.

The ability to work more flexibly is the driving force for 77% of Britain's entrepreneurs, and 70% are seeking more freedom and independence.

More than a third (37%) blamed frustrations with their current boss, while 22% claimed to have had a "eureka" moment at work.

Budding entrepreneurs appear to be a little over-optimistic about earnings, however, with most expecting to earn £40,000 a year. In reality, Britain's entrepreneurs earn an average of just £28,000 a year, the research suggests.

The realities of entrepreneurship are in fact quite different to expectations. Some 23% of entrepreneurs who have started out in the last five years say they have considered giving it up due to problems with cash-flow, marketing, lack of finance or stress.

According to the research, 19% of entrepreneurs between the ages of 18 and 34 were inspired by reality TV shows. Tellingly, however, some 45% of those already running their own business say that popular TV programmes make business start-ups look glamorous.

A new report from the London School of Economics has found that profit is not the driving motivation for most entrepreneurs. Many are instead focused on creating a lifestyle and culture that satisfies them.