James Pinchbeck, partner at Streets Chartered Accountants, dives into the growing appeal of entrepreneurship.
As we move into 2025, an increasing number of individuals are choosing to step away from traditional employment to carve out their own paths as entrepreneurs. Whether it’s turning a side hustle into a full-time business, making the leap from employment to self-employment, or launching a business straight out of education, the allure of becoming your own boss has never been stronger. But what’s driving this trend and how can aspiring entrepreneurs ensure their ventures succeed?
The rise of self-employment and small business creation in recent years reflects both economic and cultural shifts. The COVID-19 pandemic accelerated changes in work patterns, fostering a surge in remote working, freelancing and online ventures. People began to reassess their priorities, with many seeking more autonomy, flexibility and purpose in their careers.
Current data from the UK shows a notable increase in start-ups. According to Companies House, nearly 810,000 new businesses were registered in 2024, reflecting a growing appetite for self-employment and entrepreneurial ventures. Popular motivations include:
Pursuing passion projects
Many individuals want to transform hobbies or side hustles into sustainable businesses, aligning their work with their interests.
Economic opportunities
With new markets opening up, particularly in tech, creative industries and sustainable enterprises, entrepreneurs see opportunities to capitalise on emerging trends.
Flexibility and freedom
Starting a business offers control over working hours, location and work-life balance, which is increasingly appealing in a post-pandemic world.
Start-ups today are as diverse as the entrepreneurs behind them. Some of the most common routes include:
Side hustles turned businesses
From selling handmade goods online to offering consultancy services, what starts as a passion project can quickly grow into a viable enterprise.
Switching to self-employment
Many individuals are leaving the confines of employment to freelance or start their own ventures, especially in creative, tech and professional services sectors.
Graduating to enterprise
For students, the idea of starting a business after graduation is increasingly a meaningful alternative to entering traditional employment.
While passion and ideas are critical to starting a business, so too are sound financial planning and strategic decision-making. This is where accountants play a vital role. Here’s how they can support entrepreneurs:
- Assessing viability: Accountants can help you evaluate the financial viability of your business idea, ensuring it has potential for long-term success.
- Mitigating risks: Starting a business comes with risks. An experienced accountant can identify these risks and offer practical advice to mitigate them.
- Setting up your business: From advising on the most suitable legal structure (e.g. sole trader, partnership or limited company) to registering with HMRC, accountants simplify the administrative process.
- Financial management: Accountants help set up bookkeeping, financial reporting and cash flow systems, ensuring you maintain control over your finances from day one.
- Ongoing advice: Beyond the numbers, accountants often act as trusted advisers, offering insights into business strategy, tax planning and even connecting you with other professionals in their networks.
If you’ve been considering starting your own business, 2025 might be the perfect time. Whether you’re ready to bring a long-held idea to life or you’re seeking a fresh challenge, the right preparation and support can make all the difference. Partnering with an accountant ensures you have a solid foundation, enabling you to focus on what matters most – growing your business.
See this column in the February issue of East Midlands Business Link Magazine here.
