Young entrepreneurs say Labour is best for small business

A survey conducted by Shell LiveWIRE, the support service for 16-30 year-olds starting or running a business, has found that more young entrepreneurs (42.5 per cent) believe the Labour Party will create the best environment for small businesses after the next election than any other party. The Conservatives achieved just over 27 per cent of the vote, and Liberal Democrats 22 per cent.

As well as giving their backing to Labour during the run up to the election on May 5, the survey of over 1,000 young small business leaders, who have all used the Shell LiveWIRE service to help with their business start-up, found that a majority (50.4 per cent) of respondents saw Gordon Brown as the best next Chancellor for small businesses in the UK. Oliver Letwin polled 21 per cent of the vote and Vince Cable 16 per cent. The poll also found that the current Chancellor is more popular with young male entrepreneurs than with their female counterparts (men 57 per cent, and women 41 per cent).

Most young entrepreneurs (57 per cent) also believe that since Labour was re-elected in 2001, Britain has been good for small business. However the business leaders of the future noted a word of caution, with a majority (52 per cent) of those questioned unsure of whether the situation for small business would improve after the next election, and 21 per cent believing the situation would not improve.

To ensure that business start-ups receive the necessary support to succeed, young entrepreneurs called on all the main parties to provide greater government support for small businesses. Of those questioned, government funding to help small business start-ups (47 per cent), and less tax and National Insurance (38 per cent), were the two areas of support the respondents chose most often.

The Shell LiveWIRE survey also provided a fascinating insight into what motivated young people to become an entrepreneur. Of the more than 1,000 young people questioned, almost a third (30 per cent) said that they had been inspired to go into business by other entrepreneurs. However, few of the young people cited teachers as being their inspiration to go into business, and even less cited politicians as the group that inspired them (3 per cent inspired by teachers and only 0.1 per cent inspired by a politician)

The survey also uncovered some other interesting findings

• The results countered the common view that voter apathy was the result of the young not engaged in the political process, with 74 per cent of these young business people saying that they intended to vote in the forthcoming election.
• An overwhelming majority (69 per cent) would recommend a friend starting up a business of their own.
• Instead of the economy being seen as the most common barrier to entry for young people, it was in fact lack of advice on small business at school/university (30 per cent) and a lack of awareness of where to go to find the advice needed to help start up a business (30 per cent).

All respondents were drawn from Shell LiveWIRE’s database of young entrepreneurs who have used its services. Completed surveys from 1,053 16- to 30-year olds were collected between 8th and 11th April 2005.