Nearly nine in ten SMEs in the IT sector are a runaway success, according to their owners

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The latest Aldermore Future Attitudes report reveals that nearly nine in ten (85%) of small and medium sized business (SME) owners in the IT sector admit to their business being a success.

The report, which surveyed over a thousand senior SME decision makers across the UK, revealed that nearly a third (32%) of SMEs from the IT sector were founded in the second quarter of the year, compared to 29% of SMEs from the sector being launched in the third quarter of the year.

The data also found that more new IT businesses were started between 2007 and 2017 than they were in the 1990s. This finding is further supported by the latest industry figures*, which reveal the UK has witnessed a significant jump in the number of business ‘births’ occurring per year. 383,000 businesses were created in 2015, compared to only 275,000 in 2005, an increase of 39% in a decade.

Past 10 year of the most recent recorded UK business births 

Year

Number of business births

2005

275,000

2006

256,000

2007

281,000

2008

267,000

2009

236,000

2010

235,000

2011

261,000

2012

270,000

2013

346,000

2014

351,000

2015

383,000

Source: ONS

Aldermore’s study further revealed the range of reasons why individuals in the IT sector wanted to set up their own business in the first place. Over half (53%) of SME owners in the IT sector wanted to make their own decisions, 39% wanted to become their own boss and nearly half (47%) wanted to make their own decisions.

Furthermore almost all (93%) of SMEs owners in the IT sector are glad they set up their own business, with nearly a third (31%) admitting that their dream has been fulfilled.

Carl D’Ammassa, Group Managing Director, Business Finance at Aldermore, said: “With more people looking to become their own boss, it is vital they have a clear business plan in place to ensure everything goes as smoothly as possible, both in the run up to launch and, more importantly, throughout the critical first 12 months of trading. 

“Small and medium-sized businesses play a critical role in strengthening the UK economy and we must provide them with as much support as possible to ensure they triumph in the long run. Establishing or owning a business is a dream for many, however it is key that all budding entrepreneurs realise the extensive amount of time and effort that will be needed to achieve their goals.”

About the research 

The research was conducted by Opinium Research between 30th July and 3rd August 2017 with a nationally representative sample size of 1,003 senior decision makers in SMEs.

ONS Business demography, UK reports

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