Press releases

We're a nation with entrepreneurial spirit.

Mark Holweger - Broker and Intermediary Director - Legal & General -General Insurance
Mark Holweger
Commercial Director - Intermediated, Insurance

15 August 2012

Mark Holweger - Broker and Intermediary Director - Legal & General -General Insurance
Mark Holweger
Commercial Director - Intermediated, Insurance

Nearly a third of workers say they would start their own business if they lost their current job

Our quarterly Job Security Index has been tracking British workers' confidence in their job security since the start of 2012, and shows that despite gloomy stories that UK job creation has fallen to a three year low,* British workers are feeling very positive and demonstrating  great entrepreneurial spirit.

The Job Security Index research shows that nearly a third (28%) of current UK workers would leave their employee status behind and consider setting up their own business if they were to lose their job. Over half (53%) said they'd consider working on a self-employed basis.

As last month's ONS stats highlighted, it is the younger generations that are at most risk of not finding a job and being unemployed**. So it is great to see from the Job Security Index that the younger generations appear to have the most entrepreneurial flair, as almost a third,(32%) of those aged between 25 and 34 years stated they would look into starting their own enterprise. In addition, the research showed that a quarter (25%) of those aged between 18 and 24 years old would be keen to start up their own business if they were made unemployed.

The Job Security Index findings also show :

  • Men are leading the way, with just under a third (32%) saying they would start up their own business if they lost their job compared to just over a fifth (23%) of women.
  • Workers in Northern Ireland are the most likely to consider starting their own business (31%), followed by those in the West Midlands (30%), if they were to lose their job.
  • The nation with the least entrepreneurial spirit is Wales, with just 21% of workers saying they would look into starting their own company.
  • Scotland has slightly less innovative energy than the national average, with 27% of workers saying they would consider starting up their own business.

Mark Holweger, Director at Legal & General's general insurance business said: "Being unemployed can often be the trigger that some people need to follow their dream of starting up their own business. So it's great to see from our research findings that as a nation so many of us still have a strong entrepreneurial spirit, given the on-going economic backdrop. What is most encouraging is the desire among the younger generations to take the initiative and live their dream of starting their own business.

Although a new business venture can be extremely exciting and lucrative, there are still those everyday living costs to cover in the meantime. So while its good to see Brits thinking ahead of ways to help provide for themselves in the future should they lose their job, 67% of those we surveyed said that they did not have any insurance cover in place which would help provide a reliable income and so potentially an important financial cushion. Having insurance cover to protect essential living expenses such as the mortgage or rent payments or utility bills, although not front of mind, is easy to arrange and may well help to ease some of the financial worries for a budding entrepreneur, while they concentrate on getting their new venture up and running."

KEY REGIONAL FINDINGS

The table below shows the regional breakdowns for respondents in each region who said they would consider starting their own business should they lose their job, as well as the percentage of respondents who said they had no insurance cover in place to help pay their bills if they were to lose their income.

Based on July 2012 research data

Legal & General Job Security Index
Region% Prepared to start a business% with no insurance cover
 North East 2167 
 North West 28 66
 Yorks & Humberside 29 65
 East Midland 28 67
 West Midland 30 60
 East England 27 72
 London 28 72
 South East 29 72
 South West 28 72
 Wales 21 62
 Scotland 27 62
 Northern Irelans 31 64
 Average 27 67

 

Questions asked:
If you were to lose your job, which of the following would you consider doing? (Above based on those that said start a business)
Which, if any, of the following types of insurance do you have in place to help to pay your bills should you lose your job (Above based on those who said 'not applicable, I don't have any insurance in place)

 

Legal & General offers a 'short-term' income protection product, called Lifestyle Cover, which provides a monthly benefit for up to 12 months, to help maintain regular expenditure, if a customer is unable to work due to accident, sickness or involuntary unemployment. More details are available at

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