By Max Clarke

The UK’s high unemployment rate: a source of despair for some; and for others, opportunity.

1 in 6 small businesses, research by Hiscox Insurance into business start-ups reveals, have been established following a redundancy.

The research also revealed that more than three quarters of start-ups offer a product or service that is not new, but simply a development or improvement on existing businesses.

“Our research shows that entrepreneurs are starting businesses to take control of their future, whether they have experienced a redundancy or want to pursue their dreams,” explained Hiscox’ small business insurance expert, Alan Thomas. “They don’t always need to reinvent the wheel, but offer a fresh perspective on an existing idea — it’s often about hard graft and differentiating yourself from the competition,” said Alan Thomas, small business insurance expert at Hiscox.

Chief reasons for launching into business proprietorship, cited by half of respondents, were the desire to ‘be their own boss’, or to live the ‘dream’.

“Starting up can be daunting,” continued Thomas, “but if you work hard, understand your risks and keep your self-belief, you can succeed. When it comes to risks, it is important that small business owners use proper planning to protect their million dollar idea while they grow their businesses.”

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