33% increase in people launching hair and beauty businesses during Covid-19
Coronavirus has prompted many aspiring entrepreneurs to start their own hair and beauty businesses, with 496 new hairdressing and beauty companies created by Brits on furlough during the pandemic and more than 1,100 business registrations made by those who had been made redundant.
According to data from The Accountancy Partnership, there’s been a 33% increase in people starting hair and beauty businesses after being made redundant during Covid-19 and 14% of these business registrations – around 990 enterprises – were the result of a need for an extra source of income.
Although unemployment and money struggles played a significant part in this surge of business registrations, almost half (46%) of entrepreneurs who started these businesses during coronavirus said they did so as they had always wanted to be self-employed or own their own company, the report found.
However, an ever-growing interest in side hustles also contributed to the boom, with 21% of pandemic-born hair and beauty businesses starting life this way. This is a 40% increase from 2019 and is likely the result of people having more time on their hands due to lockdown restrictions, isolation and furlough, giving Brits more time to monetise the extra skills they have, the report states.
“Starting a business is notoriously difficult, even in normal times, so it was somewhat unexpected to see new businesses in their hundreds of thousands being set up last year,” said Lee Murphy, managing director of The Accountancy Partnership.
“Our research shows that many lockdown entrepreneurs saw creating their own business as their only option after being made redundant or facing other financial troubles, but the statistic of those fulfilling longer-term dreams of owning a business is hugely encouraging.
“It means that even businesses launched out of necessity have people behind them with a genuine desire to be business owners. This enthusiasm will help fledgling businesses thrive despite the adverse circumstances of their inceptions.”
Read The Accountancy Partnership’s “Boom or Bust: Beginning a Business in a Pandemic” Report now.
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