Fifth of start-ups begin as second jobs
The trend of creatives being both employed and freelance at the same time shows no sign of abating, and may even account for as many as one fifth of new ventures, a study suggests.
In fact, a survey of 500 start-ups that launched in the last year shows that 21% of their owners were holding down a nine-to-five job with an employer while becoming their own boss.
Men aged between 25 and 34-years-old are the most likely ‘double-job’ entrepreneurs, who are invariably setting up their own business in Digital Services, found the study by alldayPA.
The call-answering company said: “Wannabe entrepreneurs mitigate the risk of going it alone [by] launching their new venture while still in employment…
“This mirrors a growing trend for UK workers having second jobs to boost income, [as] HMRC reports 1.2 million have official second jobs, up from 1.05 million in 2007.”
Marketing and PR is the second most likely field hosting start-ups whose owners are employed by someone else, but web designers and SEO specialists are even more prolific.
The technical nous of the latter workers may explain why alldayPA thinks cloud hosting and smartphones (with multiple email accounts) are behind the rise of double-job entrepreneurs.
The company’s chief executive, Reuben Singh, reflected: “This is a trend the government should be reacting to by cutting red tape for second job start-ups and simplifying the tax structure to help balance PAYE with self-employment and dividend payments. Such businesses may start small, but they [can grow to] be major sources of employment and income”.
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24th June 2015