Recession is holding back North entrepreneurs

Nov 9 2009 by Robert Weatherall, The Journal

POTENTIAL entrepreneurs are refusing to set themselves up in business because they fear they will fail in the recession.

A new generation of would-be business owners are holding off from giving it a go until the economy starts to improve, experts have said.

The claims have been made in research conducted by The Prince’s Trust among 18-30-years olds who are considering taking the leap into self employment.

More than one in four young people in the North East have a business idea which has been put on the back burner, the Trust said

But business leaders have warned attitudes will have to change if young adults are to help catapult the region out of economic gloom, and that a recession can be the ideal time to set up on your own.

Peter Branson, acting regional director for The Prince’s Trust in the North East said: “Our economy needs fresh input and young inspiration. The recession should not mean putting the brake on creativity.”

One of those who has already taken the first step into the world of self employment is Richard Overton. The 27-year-old from the Walker area of Newcastle had been out of work for four years while acting as a carer for his ill mother who suffers from Multiple Sclerosis

Richard had spent four years in a fruitless search for work while claiming benefits. But earlier this year he approached The Prince’s Trust and became self employed.

He said: “It was really frustrating getting nowhere with finding a job. I was just staying indoors, day after day, and it was boring. I had previously had a job working at Hartlepool power station as a labourer and I also had some experience of fencing so after speaking with business advisers at The Prince’s Trust I decided to use my skills to set up my own fencing and decking firm.”

Richard received a loan and advice from a personal business mentor from the Trust’s Business Programme.

He added: “I really appreciated the support given to me by my mentor. I really enjoy working for myself and the best thing is that all the money comes to me rather than just getting a wage for the same work. It is quieting down a bit now that summer has gone but that was in my business plan. I would encourage anyone who has a business idea to get out there and give it a go. If you can make a go of it during a recession then you obviously have a sound business that will weather most storms.”

Trust director Mr Branson added: “It is fantastic so many young people are having ideas. Now it is vital we provide these entrepreneurs with the support they need to make their businesses work.”

Last night Stephen Boyle, head of group economics at The Royal Bank of Scotland Group said: “The research suggests the UK has a measure of pent-up entrepreneurial activity, waiting for the right economic conditions. If the worst of the recession is behind us, we can be optimistic the UK’s young entrepreneurs will play an exciting role in the recovery.”