Entrepreneurs in East of England most likely to make a Profit, says Survey
According to new YouGov research commissioned by wealth manager Kleinwort Hambros*, entrepreneurs in the East of England are more likely to succeed in setting up a business than their counterparts in the rest of Britain.
According to new YouGov research commissioned by wealth manager Kleinwort Hambros*, entrepreneurs in the East of England are more likely to succeed in setting up a business than their counterparts in the rest of Britain. Indeed, 15% of existing business owners in the East of England agreed with the statement that they had previously failed to set up a business compared to 19% of their counterparts in the Midlands, 19% in the North of England and 30% in London.
The research, which surveyed business owners across Great Britain, found that entrepreneurs in the East of England were most likely to generate a profit in the first year of trading, with 68% of entrepreneurs in the East saying that they had made a profit in their first year of trading compared to 58% of business owners in the South of England and 51% in London.
In addition, the findings show that business owners in the East of England were most likely to anticipate business growth with 31% saying they expected to achieve 5% growth in trading profit within the next year compared to just 17% in the Midlands and 19% in London. Of all the business owners, those in the East of England were the most optimistic about growing their operating profit by 15%. Indeed, 6% of business owners in the East of England said they would grow their profits by 15% in the next twelve months compared to just 3% of business owners in the North and 2% in London.
William Quantrill, director, who leads the team of private bankers in the Kleinwort Hambros offices outside of Cambridge, said: “Business owners in the East of England are right to feel confident as the region generally is a real hot spot for entrepreneurialism. Cambridge itself is popular as a world-class location for prestige businesses, it is a centre of technology, science, innovation, research and development. Over the past few years, we have certainly seen more and more successful entrepreneurs coming to us because they have built up their businesses and are ready to sell them.”
One of the reasons for the early success of business owners in the East of England may be their ability to find alternative sources of funding. For example, when asked how they financed their business, 10% of business owners in the East of England said they used alternative finance loans compared to just 3% of business owners in the Midlands and 3% in London. But entrepreneurs in the East of England were amongst the least likely to use their own savings to fund a business with just 49% saying they used their own savings to fund their business ventures compared to 63% in the Midlands and 54% in the North of England.
Interestingly, business owners in the East of England were most likely to cite lack of financial support as a barrier to success with 34% agreeing with the statement that they suffered from lack of financial support from the government compared to 26% of business owners in the Midlands and 26% in London.
William Quantrill added: “As a private bank which tends to deal with entrepreneurs at a later stage in their business cycle, we are seeing a lot more successful entrepreneurs coming to us who have received their initial funding from private investors and alternative sources of finance. This is clearly an emerging trend, and over the last decade in particular, alternative forms of finance for fledgling businesses is becoming more widely accepted, especially for younger entrepreneurs who are grateful for the support.”
Interestingly, business owners in the East of England were among those most likely to sell their businesses if an acceptable offer were made to them. Indeed, 55% of entrepreneurs in the East of England said they would sell their business, slightly behind 57% of London, this is compared to 48% of business owners in the North of England and 49% in the Midlands.
*SGPB Hambros Bank Limited
For further information, contact Anita Turland, Head of Media Relations, Kleinwort Hambros, on 07769 682373 or 0203 207 7192 or email email@example.com.
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1012 small business owners. Fieldwork was undertaken between 27th March and 7th April 2017. The survey was carried out online. The figures have been weighted and are representative of British businesses in terms of their size (i.e. number of employees)
Societe Generale purchased Kleinwort Benson in June 2016 and will merge Kleinwort Benson with SG Hambros Bank. The combined business will be known as Kleinwort Hambros but full legal integration has not yet been completed. Until this time, they will operate as two independent entities within the Societe Generale Group.
Kleinwort Hambros is the wealth management arm of Societe Generale Private Banking in the UK, Channel Islands, and Gibraltar. It combines the two award-winning* brands, Kleinwort and Hambros.
With assets under management of £16bn and over 1,000 employees, Kleinwort Hambros has offices in London, Cambridge, Newbury, Leeds, Edinburgh, Guernsey, Jersey and Gibraltar.
Established in 1786 and 1839 respectively, Kleinwort and Hambros and have been helping clients create, conserve and growth their wealth for over 200 years. Today Kleinwort Hambros provides its clients with comprehensive wealth management and private banking services including investment management, financial planning, banking services, trusts and family offices. It also provides mid-corporate advisory services.
*SGPB Hambros was named "Best Private Bank in the UK Crown Dependencies" by Private banker International. The award celebrates the best among the private banks that are successfully serving wealthy clients in Jersey, Guernsey. Kleinwort Benson was winner of the Investment Team of the Year 2016/7 (STEP), High Growth Strategy investment performance award 2016 (PAM), 2016 Investment Performance ‘Aggressive Portfolio’ 2016 (Citywire), and Best Cautious Portfolio Winner 2015 (Portfolio Adviser).
Societe Generale is one of the largest European financial services groups. Based on a diversified universal banking model, the Group combines financial solidity with a strategy of sustainable growth, and aims to be the reference for relationship banking, recognised on its markets, close to clients, chosen for the quality and commitment of its teams.
Societe Generale has been playing a vital role in the economy for 150 years. With more than 145,000 employees, based in 66 countries, we accompany 31 million clients throughout the world on a daily basis. Societe Generale’s teams offer advice and services to individual, corporate and institutional customers in three core businesses:
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