A Stafford-based drinks company founder has highlighted the importance of self-belief when starting out in business after the release of new research revealed more than seven in 10 of Midlands-based small business leaders have abandoned a potential venture due to a lack of confidence.
A YouGov study conducted for the British Business Bank found that the Midlands has a higher proportion of small business leaders lacking confidence than the national average with 71 per cent in the region walking away from a business idea compared with 65 per cent across the UK.
The organisation has said it believes this crisis of confidence is costing the UK over half a million potential business ventures that are not pursued.
The British Business Bank and its Start Up Loans programme is encouraging budding entrepreneurs to back themselves and to seek out sources of unbiased support.
Sunnyside Drinks founder Christian Heath, received £25,000 from the programme which he used to finish developing the first two flavours of his alcoholic ginger beer brand and to complete their production runs.
He was inspired to fill a gap in the UK market after spending 12 years in Australia, and since its launch in 2023, the brand has expanded into a trio of award-winning drinks which are 100 per cent natural, completely gluten-free, and vegan.
On the back of the figures released this morning, he said: “Starting Sunnyside was an act of total conviction. I realised early on that in business, doubt is the only thing that can truly eat away at your progress. You have to back yourself with everything you’ve got. That doesn’t mean moving blindly; it means doing the work, trusting your research, and maintaining a laser focus on the vision until the rest of the world sees what you see.”
In the study, 41 per cent of small business leaders nationally said a lack of self-belief was one of the biggest barriers to starting or growing their business, and 36 per cent said fear of failure holds them back more than a lack of funding.
Thirty-eight per cent have either delayed pitching to clients or not pitched at all due to confidence issues and the same amount said they had delayed or decided not to expand or scale their business due to their lack of belief.
Young entrepreneurs particularly feel the strain with 41 per cent of 18 to 34-year-old believing they’re not the ‘right kind of person’ to run a business against an average of 30 per cent across all age groups.
Twenty-three per cent of the same cohort strongly agreed with the statement ‘I sometimes feel I’m not the ‘right kind of person’ to run a business, compared to just two per cent of over 55s.
Louise McCoy, Managing Director of Start Up Loans Products, British Business Bank: “At Start Up Loans, we believe in the power of ideas and the people behind them. Confidence should never be a barrier to pursuing your dreams.
“We’re encouraging entrepreneurs to back themselves – and we support them with developing a pre-application business plan and post-application mentoring.
“Like in other walks of life, new business owners are often affected by imposter syndrome. This is why we connect Start Up Loans recipients with mentors and provide other post loan support.”
