New entrepreneurs say they’re pushed by necessity over ardour as financial pressures chew

A new generation of entrepreneurs say they are motivated by increasing their income rather than passion for the work, a new report has found.

Economic pressures are the main driver behind a new wave of entrepreneurs, according to Enterprise Nation’s Start-up Ambition report, which reveals that four in ten adults are planning on starting a business.

A third of these aspiring founders say financial necessity is their primary motivation, marking the first time it has overtaken ‘passion’ as the main reason for starting a business.

Some 56 per cent are launching side hustles to bridge the gap between their wages and rising bills, a 2 per cent increase on the previous year.

Side-hustle entrepreneurs project their first-year earnings to be £7,034, an increase from £5,765 in 2025, while those planning full-time ventures expect £36,887, up from £34,000.

Crafts lead the way: Arts and crafts are the most popular option for entrepreneurs 

Arts and crafts businesses are the most popular option for prospective small business owners (14 per cent), followed by food and drink, despite increased cost pressures in the hospitality industry.

Sam Ikhuoria, from Newham, East London, plans to launch his fragrance business NPareil in September to increase his income in the long term.

‘Rising costs have definitely played a role, but it’s also about security,’ he said. 

‘Many people relied solely on their day jobs during Covid, myself included. Seeing how they had nothing to fall back on when laid off, made me realise the need for having additional income streams. 

‘A business or side hustle feels like a way to protect myself financially.’

Younger entrepreneurs are more keen to branch out on their own, with 62 per cent of 25-30 year olds planning to start a business this year.

Yorkshire & The Humber had the most budding entrepreneurs at 45 per cent, followed by the North West at 43 per cent.

But economic conditions weigh heavily on prospective founders. 

Enterprise Nation’s research found that two-fifths of entrepreneurs are worried about economic uncertainty and high start-up costs, while a third are concerned about finding customers.

‘We’re witnessing a significant and fundamental shift in how people are approaching entrepreneurship in today’s economic climate,’ said Aaron Asadi, CEO of Enterprise Nation. 

‘With the pressures of rising living costs and ongoing financial uncertainty, more individuals are choosing to start a business as a way to take control of their financial future.

‘This surge in ‘income injector’ start-ups may be fuelled by challenging conditions, but it also highlights the resilience and resourcefulness of those determined to turn financial pressures into opportunities for growth and innovation.’