Entrepreneurs are the lifeblood of the UK economy and will be key to our recovery but a shocking 33% of all businesses will not make it past their third year. There is a growing stock of Start-ups in Britain and we have a strong entrepreneurial culture with more than a third (34%) of Brits wanting to, or have already started up their own business. But in a fiercer market than ever, it is essential that businesses have firm strategy in place to overcome the wealth of challenges they may encounter. As 44% of businesses admit to having run out of cash or come close, it has emerged that this generation’s entrepreneurs need more than just a great idea.

The new report has revealed that 84% of business start-ups were self-funded yet almost a third (29%) are spending more time on their finances than they had expected to. With 65% of businesses starting up on less than £5,000, there is just a small margin for error.

A quarter of businesses have admitted to either missing payroll or coming close and 30% have made mistakes dealing with HRMC which have led to either a fine or corrective action. A clear indication that getting too wrapped up in the excitement of an idea and sidelining the, perhaps more tedious elements, works to the detriment of many ventures. A firm financial management base and being more mindful of the challenges will evidently be crucial to improve the chances of surviving the first three years. And avoid joining the third of businesses who, with the benefit of hindsight, say they would ‘do things differently.’