Entrepreneurs turn to family before agencies

Three times as many of the North's budding entrepreneurs sought advice from friends and family before starting up a business than obtained advice from support agencies like Invest NI, it was revealed today.

In fact research by the Ulster Bank showed advice from local or government agencies was bottom of the list when it came to seeking advice on setting up a business.

The survey, which researched the views and expectations of businesses with up to 100 employees, showed that nearly a third of entrepreneurs went full steam ahead seeking no advice when starting up or taking over a business.

Another third ran their ideas past friends or family.

Some sought advice from several places before taking the plunge – 20% went to an accountant, 17% to a solicitor and 14% to a bank for guidance.

Just 11% said they had obtained advice from a local or government agency such as Invest NI.

However the bank said more people should use the services of such agencies.

Ulster Bank’s David George said: “Entrepreneurship will underpin the future expansion of Northern Ireland’s economy and it is therefore vital that our entrepreneurs and start-up businesses receive all of the guidance and support that they need to succeed.”

Mr George added: “There is a strong base of expertise and advice available to this sector through government agencies like Invest Northern Ireland and through private sector advisors and lenders and I would encourage all entrepreneurs to take advantage of the resources and know-how open to them.”

Invest NI urged people to come to them for advice. A spokesman said: “There is a lot of expertise available, much of it completely free, and we would encourage people who are starting or taking over their own business to access this.”

He added: “Research shows that people who seek advice when starting their own business have a much better chance of it surviving. Their business also tend to grow faster.”

Interesting figures on just why people started their own business showed that almost a quarter – 24% – of those questioned said they went out on their own for the independence of being their own boss.

A further 14% said they made the decision for financial reasons or to make money, 11% to develop a hobby or skill and 7% said they did their own thing to continue a family tradition.