Giving up their paychecks should not be required of startup founders; for many, it is an extravagance.
The AI Safety Summit was held at Bletchley Park, a site well-known for British intelligence, last week. There was a stupid chat at a related function at Lancaster House in London. Rishi Sunak, the prime minister, said that more British entrepreneurs and owners of businesses should feel comfortable forgoing their monthly pay cheques in order to launch their own ventures during a softball interview with internet mogul Elon Musk.
In an effort to promote UK entrepreneurial activity, it was proposed that imitating Silicon Valley’s culture of risk-taking and reward would help establish the ideal conditions for start-ups to prosper.
It’s evident to us at Virgin StartUp that entrepreneurs are increasingly applying for Start Up Loans while holding down a job. Of those who applied to us for support prior to the cost-of-living trouble, 58% were still employed. Now, this stands at 86%.
While some of these company founders decide to go part-time and cut back on hours, others continue their full-time jobs. The important thing to remember is that it’s OK for more and more entrepreneurs to finance their brand-new company endeavors with money from their normal jobs.
It is understandable that these aspiring new business entrepreneurs are being more watchful and needing to approach things differently in light of the cost-of-living crisis. Not only have all corporate expenses gone up dramatically, but
It would make sense to them to continue supporting their startup while hanging onto a safety net of funds. And while managing two jobs is difficult, it’s not unachievable—as any full-time parent knows! and, given the additional protection it offers, is a reasonable choice that many people are ready to accept.
Although this is undoubtedly one of the hardest economic times to launch a firm, the British spirit of entrepreneurship hasn’t died. Virgin StartUp’s Start Up loans are coming in at a steady pace.
The UK economy’s small enterprises remain its lifeblood, and I am constantly amazed by the influx of bright and imaginative individuals that visit our doors.