The challenges in becoming an entrepreneur and the support available

More people than ever before are starting businesses as part of a career change and making a success of it. We take a look at the challenges these entrepreneurs face and the support available to them.

Starting a business is a lifelong dream for many people. Some of them think of leaving their job and starting their own company. Whether you’re setting off in a completely new direction or exploring opportunities within your existing area of expertise, it’s never too late to become an entrepreneur.

Those who become entrepreneurs when they are shifting careers often have more chance of success. Despite the media’s portrayal of entrepreneurs as young, tech-savvy disruptors in their late teens or twenties, the reality is that many successful people starting businesses are in their thirties, forties, fifties or beyond. According to a report in Harvard Business Review, the average age of a successful start-up founder is 45 (click here for source).

I Experience is an asset

These ’mature’ entrepreneurs are just as likely to succeed as those in their 20s. Indeed, a number of entrepreneurs in this group have achieved great business success. Eric Yuan created Zoom at 41, Arianna Huffington founded the HuffPost at 54, Bob Parsons founded Go Daddy at 47 and Reed Hastings started Netflix when he was 37. So if you’re considering leaving your job to become an entrepreneur, age is clearly not a barrier – and experience matters.

Many people starting businesses find that their past experiences can be a huge asset. Wide networks, experience and personal capital help to make more experienced entrepreneurs particularly successful when starting businesses.

They also have further advantages through experience of relevant markets, industry knowledge and supplier networks.

I Challenges facing mature entrepreneurs

While it is now easier to create a business, there are still significant risks, especially for entrepreneurs who have gone past the more ‘worry free’ years of their teens and twenties. Often, they have reputations to maintain or families to support, which raises the stakes. This can make starting a business a daunting prospect.

All business, particularly start-ups, have to find ways to use technology in order to be competitive. Younger entrepreneurs are more likely to have a tech background or to be able to partner with someone they studied with that has one. For many middle-aged entrepreneurs one of the biggest challenges they face is the absence of a tech co-founder.

Fortunately, there is plenty of help and support available when starting a new venture.

For instance, start-up incubators and networking schemes have made it significantly easier for entrepreneurs to pursue their business dreams.

I Business incubators

Business incubators provide start-ups with the support and resources young companies often find difficult to access and can make a huge difference to the success of a business in its early stages.

One of their biggest benefits is that they give entrepreneurs more time to develop their product, while handling some of the day-to-day administrative tasks.

They also provide access to influential networks and prospective business partners that are not necessarily available to young firms.

Entrepreneurs can share ideas with other small businesses and entrepreneurs within the incubator. As well as start-ups, incubators are home to angel investors, venture capitalists and other businesses, providing the opportunity for mentorship.

Some incubators are also connected to accelerators, which can help businesses with their next stage of growth.

I Benefits of networking

For new entrepreneurs who are looking to make contacts, networking schemes can help make the right connections.

One example is the WealthiHer Network (click here to read more), a leading professional organisation offering women and female entrepreneurs the knowledge, tools and confidence they need to manage and grow their wealth. As a founding partner of the WealthiHer Network, SG Kleinwort Hambros is proud to contribute to and organise events, forums and discussions that offer female entrepreneurs valuable connections.

INTERVIEW – RYAN EDWARDS, CEO OF TECH AND MUSIC START-UP AUDOO

Audoo provides technology that tracks music played in public places to ensure rights holders are compensated accurately.

I What did you do before you became CEO of Audoo?

Before my professional career, I pursued my dream of being a musician and signed a record deal at the age of 18. Sadly, we didn’t achieve global rock god status.

Thereafter I grew my career across retail and digital business including Carphone Warehouse, Grapple Mobile which became Europe’s largest app developer and sold to Monitise PLC in 2013, then to Visa heading up data partnerships.

I’ve been fortunate to work in great mix of corporate, and entrepreneurial businesses.

I Why did you become an entrepreneur?

It’s funny, I never set out to be an ‘entrepreneur’ – the vision was a desire and idea to help. I’m motivated by the constant desire to deliver a level playing field for musicians. There has been a long-term challenge for the music industry for royalties to be distributed on real world/more accurate data and that’s where everything came together.

I How much have you raised?

I have raised over £25 million to grow and accelerate the business through direct investment. I have avoided venture capital funds, favouring family offices and those with deep industry knowledge to wrap the most experienced and successful people I could find around me.

I What does private wealth mean to you now?

It’s about the obvious things like financial security for my daughter, wife and I, then it’s about making a difference. Wealth is a responsibility to ensure those in need can be helped and to create a better future. It sounds obvious, but I learn daily about how to do more.

I What one tip would you give to someone thinking of changing direction and becoming an entrepreneur?

Just do it. There is nothing better than being your own boss. I’ve been able to recruit all the best people I’ve ever worked with across my career. We’ve created our own culture and I get to spend my time with people who inspire me daily. My largest regret in life is that I didn’t do it earlier.

If you would like to know more about Audoo, click here.

For more information

Contact Jeremy Hill

Kleinwort Hambros

Newbury Office

[email protected] 020 7597 3445

SG Kleinwort Hambros Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The company is incorporated in England & Wales under number 964058 with registered office at One Bank Street, Canary Wharf, London E14 4SG