Inexperience and overspending contribute to failure of a third of young entrepreneurs in the UK
According to some of the UK’s most successful entrepreneurs, other reasons include creating an overambitious business plan, not knowing how to ride the sticky phase of year three, and a lack of time and energy.
“Coming up with a great idea is the easy part for the left side of the brain, knowing how to raise backing for that idea and turn it into profit requires an entirely different side of the brain and skill set plus a huge dollop of persistence and the nerve to overcome the fear of failure,” says Robin Sheppard, chairman of Bespoke Hotels, a leading hotel management company.
“A breakdown between any of these components will explain why they don’t survive.”
The comments were made at an Oxford Brookes University event sponsored by Bespoke Hotels. The Dragons’ Den-style event at The Bermondsey Square Hotel in London was designed to help students reflect on their own likelihood of becoming an entrepreneur.
Third year students studying hospitality and tourism were given eight minutes to present their business venture to a panel of successful entrepreneurs.
Sheppard adds: “The Oxford Brookes Dragons’ Den programme is a very topical concept, which we hope will continue to inspire and tempt the future hospitality pioneers of tomorrow.”
Dragons were asked why they thought a third of young start-ups stop trading after three years.
Jo Levin, managing director of The Capital Group and director of Hospitality Services for the EMEA Region at Goldman Sachs, said: “Talent is only part of the successful equation, too many really talented young business people do not get enough access to the experienced people in industry before starting their businesses.”
Sam Harrison, founder of Sam’s Brasserie & Bar, added: “I think often young entrepreneurs have fantastic ideas and creativity, but maybe not enough genuine business experience. I also think some people starting out in their own business don’t realise the time and energy required to make it succeed.”