Capital on Tap surveyed over 1,000 people across the UK to understand the reasons behind wanting to start a business, which industries are the most desired and the potential limitations facing new entrepreneurs.
- The top motivator for starting a business is the ability to become your own boss, with 47% of Brits citing this as their main reason
- One in five people would like to run their own café, restaurant or food truck
- Financial constraints are the main reason why people are reluctant to start a business, with 36% saying that it would be their primary concern
The dream of launching a business is one that resonates with many. A recent Capital on Tap survey of 1,000 people across the UK shows that 61% of Brits have considered starting their own venture, with nearly two-thirds thinking about it on a regular basis. But if the entrepreneurial spirit is so widespread, why do so few people actually take the leap?
The survey also uncovers which types of businesses create the foundations for the most dreams, and what’s standing in the way of them becoming a reality. Chief Commercial Officer, Hugh Acland, also offered expert insight to break down startup costs and share practical financial tips.
Top Motivation for Starting a Business
A key ambition for many aspiring entrepreneurs is the freedom that comes with being their own boss – 47% of respondents cited this as a main reason for wanting to start a business.
The second most popular reason is the appeal of flexible hours (38%), with achieving a better work-life balance just behind (32%).
Although financial rewards are certainly a consideration, it’s the pursuit of financial independence, the freedom to earn on one’s own terms and build long-term security, that drives nearly a third of aspiring founders. Many also wish to transform their hobby into full-time careers – a goal that motivates one in four prospective business owners (25%).
| Rank | Reason | The percentage of people stating this as the reason to start a business |
| 1 | Being my own boss | 47% |
| 2 | Flexible working hours | 38% |
| 3 | Better work/life balance | 32% |
| 4 | Financial independence | 31% |
| 5 | Turning a hobby into a career | 25% |
| 6 | Working from anywhere | 24% |
| 7 | Building something meaningful | 21% |
| 8 | Creating something for my family | 18% |
| = | Passion for an industry or idea | 18% |
| 10 | Desire for unlimited earning potential | 17% |
Most Popular Business Ambition
One in five new entrepreneurs would like to start a business running their own café, restaurant or food truck, making it the UK’s most popular business ambition.
Another passion-driven path is online retail, with 16% of Brits naming it their dream venture. One in ten would choose Airbnb hosting and short-term property rentals as their preferred business idea. The automotive industry holds the least interest overall, with just 4% of Brits naming it as their business of choice.
| Rank | Type of business | The percentage of people stating this as the business they would most like to start |
| 1 | Café, restaurant, or food truck | 20% |
| 2 | Online retail (e.g. clothing, accessories, niche products) | 16% |
| 3 | Airbnb hosting or short-term property rental | 10% |
| 4 | Technology | 9% |
| = | Speciality shops focusing on specific products (e.g., books, fashion, electronics, gifts) | 9% |
Reasons Behind Not Starting a Business
Despite the interest in starting a business, a significant obstacle to entrepreneurship in the UK is the lack of startup capital, with 36% stating that financial constraints as the primary reason for not launching a business.
Beyond finances, emotional and psychological barriers play a powerful role. Fear of failure (29%) and lack of self-belief (22%) are both named as key reasons why people don’t pursue their business ambitions.
For 24% of would-be entrepreneurs, the challenge isn’t fear or finances – it’s a lack of direction, with not knowing where to start being a surprisingly common hurdle.
| Rank | Reason | The percentage of people stating this as their business barrier |
| 1 | Lack of startup funds | 36% |
| 2 | Fear of failure | 29% |
| 3 | Not knowing where to start | 24% |
| 4 | Uncertainty about profitability | 23% |
| 5 | Afraid of leaving a stable income | 22% |
| = | Lack of confidence or self-belief | 22% |
| 7 | Concerns about economic instability | 19% |
| 8 | Lack of a clear business idea | 18% |
| 9 | Lack of market knowledge | 17% |
| 10 | Lack of time | 15% |
Hugh Acland at Capital on Tap adds:
“While the idea of raising capital may seem daunting, there are a variety of ways to access funding, such as government-backed startup loans, crowdfunding, and angel investors. A dedicated business savings account can be a smart way to manage and grow your finances. It allows you to earn interest on idle cash, build up reserves for future investment, and keep your business finances organised and separate from personal spending.
Before leaving your current job, it’s ideal to create an emergency fund that covers several months of personal expenses that can act as a buffer during times of low or uncertain income.
If you’re feeling stuck, the best place to start is with a business plan – outline your idea, target audience, and how you’ll make money. Information and support through workshops, online courses, or from other entrepreneurs will help you to gain knowledge.”
Capital on Tap provide credit cards built for small businesses.