More than three quarters of start-ups profitable in first year of trading, says study

A new study suggests that more than three quarters (79 per cent) of UK start-ups have turned over a profit within their first year of trading, while a quarter claim that they have made a profit within their first one or two months.

The research, carried out by business directory and highlighted in Business Matters magazine, reveals that British entrepreneurs are also spending a lot less money than most would expect in order to get their micro-businesses up and running.

57 per cent of entrepreneurs quizzed said that their small business cost less that £1,000 to set up.

A further 74 per cent believe that the company they have brought to life is either ‘very’ or ‘quite’ successful.

Mark Clisby, Marketing Director at Business, said: “Setting up a business can understandably be daunting, especially when taking the financials into account.

“However, our research sheds a promising new light on starting up and making success of a dream”.

According to reports, almost 600,000 new start-ups have been created in 2016 so far – a number which is expected to balloon further by the end of the year.