Banks are making it difficult for ‘Mumpreneurs’

New research by APS financial, the most proven digital UK challenger to banks, reveals what’s stopping UK mums from starting their own business.

With nearly half of UK mums saying they admire entrepreneurial businesswomen like Michelle Mone, Karren Brady and Liz Earle, the study unveils the barriers Mumpreneurs believe are stopping them from becoming the next ‘Baroness Bra’.

Of the UK mums polled by APS financial, the top three reasons for not starting a business were:

  1. It seemed like too big of a risk (47%)
  2. Not knowing how to get started (43%)
  3. The admin and financial aspects involved (35%)

Meanwhile, those who currently own a business (23%) and previously owned a business (25%) named the top challenges they faced when starting and running their own enterprise:

  1. Having enough time to do everything (40%)
  2. Managing the business while raising children (29%)
  3. The amount of red tape they went through as a start-up (29%)
  4. Finding a bank who’d support them financially (22%)

Financial services providers lacking flexibility

These Mumpreneurs also found financial service providers as being far from flexible:

  • 41% said that the process of setting up a business bank account had taken longer than expected
  • 38% thought it had been a ‘long and slow’ process
  • 38% found the rates and fees were not transparent enough

Worryingly, more than one in ten British mumpreneurs admitted they had decided to cease trading due to lengthy admin tasks such as completing tax returns, talking to their bank, and problems with keeping track of business costs and expenses.

Perceived costs of establishing a dream business were also dramatically different from the reality, indicating education about start up fees could be far better.

While 36% of mumpreneurs who had started their own business had done so with an investment of less than £1,000, many of those who’d not gone into business thought their start-up would need an investment of £10,000 – £50,000 to get it up and running.

A business current account opened in 6 minutes

To help break down some of the barriers to starting a business, APS Financial now offers UK entrepreneurs, sole traders and small businesses the chance to get their digital, current accounts up and running within 6 minutes of starting their application.

This is in stark contrast to research commissioned by APS Financial previously, which revealed that over 15% of UK small businesses had to wait more than 26 days before they were granted access to their business bank account.

Fastest way to open a UK business account

APS financial prides itself on providing one of the fastest, easiest platforms to set up a business account in the UK and has helped nearly 80,000 start-ups and small businesses, including nearly a quarter of female entrepreneurs.

Business owners are given a personalised account number and sort code in the time it takes to change a nappy, helping them to get up and running faster.

You can find out more about APS’ business current account here, or to open an account (without a credit check) in 6 minutes, here.

More help on starting up

ByteStart is packed with help and advice on how to start your own business and deal with the thorny subjects of tax, accounting and finance. Try some of our most popular guides;

Starting Up

Leading a business

Accounting

Finding funding

Paying less tax

Improving cashflow

Tax guides

 

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