How much money do you REALLY need to start a business? Research shows it’s not much at all

It doesn’t take thousands to get your start-up underway

A quarter of entrepreneurs started their business with less than £1,000, a survey has found.

While 7% of entrepreneurs spent more than £100,000 in their first year, it seems most people didn’t need too much cash to get up and running.

In a survey of 241 entrepreneurs by start-up community Shell LiveWire, 25% said they spent less than £1,000 in their first year. A further 24% spent less than £5,000 and 15% spent between £5,000 and £10,000.

More than half the entrepreneurs started their business alone, however the majority of people surveyed recommended getting a business partner to share support and expertise.

Further diminishing the myth that it takes a lot of money to start a business, a third of first-time business owners in a separate survey by Experian had household incomes of less than £25,000 and 8% lived in social housing.

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Readers' comments (1)

  • I started my own business two years ago with about £1.200 spent on a computer and website and office equipment. It is the best thing I ever did and I enjoy being self employed. My last boss was useless and I am free of her and work when it suits me without the stress of office politics and reporting restrictions. Go for it.

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