One in five Brits “hidden entrepreneurs”

One in five UK adults use their spare time to grow a new business or earn extra income, according to the latest RBS Enterprise Tracker.

Nearly half treat their hobby as a way of earning extra income or hope it will develop into a full-time business.

The hidden entrepreneurs are spread evenly across all regions of the UK but there is a large “ambition gap” between people who say they want to start a formal business or enterprise (38%) and the 6% who actually do.

Some are put off by perceived practical barriers – such as the state of the economy (41%) and where to find the cash (41%), while others lack confidence.

Half (49%) assume they lack the skills for the job but only 12% of respondents were put off because they couldn’t see a market opportunity.

Commenting on the findings, Cliff Prior, chief executive of UnLtd, the foundation for social entrepreneurs, says: “These figures tell us that people want to create businesses out of their hobbies, passions and interests – which is where many social entrepreneurs start – but don’t feel they have the support or confidence to do so.

“As a nation, we need to get far better at nurturing our entrepreneurial talent and normalising entrepreneurship as a career path from an early age.”

The survey interviewed 3,789 people during November 2013.