The top 5 sectors for start-up loans
The past 12 months has seen a definite increase in business requiring start-up funding. The UK has seen a massive rise in female entrepreneurs and women in employment is now at a record high therefore explaining why the fashion and beauty industry is one of the largest sectors in start-up funding.
- Fashion and Beauty start-ups – skin and hair products had increased sales even in economic downturn. These business’ have a relatively low cash entry barrier and low set up costs. It is a scalable business and fits in well with women who want/need to work but are also looking after their families.
- Creative business – With popular TV embracing creative pastimes, such as cookery, make and mend and budget saving crafts, what have been traditional hobby areas have now becoming venture ideas. Many people are wanting to work in a business they are passionate about.
- Business service start-ups- Ventures that provide services to other business are also popular. Finding a niche and gap in the market is the starting point for these start-ups. This often comes from working in a particular industry and realising that there is a service that could/should be provided that isn’t.
- Cottage industry start ups- Food markets and festivals have shown a popular rise in consumers wanting to buy products from local sources with localised production.
- Technology start-ups- This sector has expanded recently with UK technology firms doubling over the last three years.
Start-up business enable job creation, so encouraging entrepreneurial spirit is important to in turn provide growth in our economy. Having a great product or service, employing the right people, pin pointing the unique elements to your business that set them aside from others, sticking to deadlines and being able to sell your products are all key to a successful business that will flourish for years to come.