Credit Cards

New Mums mean new business

Becoming a mum is likely to be the most common incentive for women starting up their own business this year, research by Tesco Business Credit Card reveals.

31/01/07

New Mums mean new business

Many women have had enough of juggling the demands of working for an employer while still being a good mum, so they decide to go it alone. Turning a hobby or pastime into a commercial enterprise is one of the most popular ways of launching a new business for mothers, says the study by Tesco Business Credit Card.

Sue Hayward, presenter of Sky TV's Women in the Property Market and author of Women Leading, comments: “For many women, the late-night cries of a newborn baby awakens an entrepreneurial spirit. We’re seeing a wide array of new businesses emerging, quite literally, from the nursery, into the open market.”

One of the most famous examples of mothers turning to new crafts is the author JK Rowling.

She began writing the first Harry Potter book during rare free moments following the birth of her first child.

The findings also suggest that :

Flexibility, enabling mothers to combine work with family life, is the most common reason for women deciding to set up on their own. Men, by comparison, become self-employed because they want to earn more money.
Women set up new businesses at a younger age than men, typically between 25 and 34, compared to 34 and 45 for men.
A woman is most likely to start up a new business after the arrival of a first child. The chances of her starting a business diminish dramatically with each subsequent addition to the family.
However, despite women’s growing entrepreneurial success, two thirds of the new businesses surveyed were set up by men.
And men appear more likely to earn more from their business. Almost two thirds of all businesses run by women had turnovers of less than £50,000 a year, compared to half as much again for men.

Monica McCormack, spokesperson for Tesco Business Credit Card, comments: “Our study suggests that new mothers may be having a bigger impact on the dynamism of Britain’s economy than anyone previously imagined. They appear to be a powerhouse of creativity, which is only to be encouraged. “

A regional breakdown shows most of the new businesses established by women this year will be in the south-east of England, East Anglia, London and the East Midlands.

Scotland, the North East, Northern Ireland and Wales have the lowest numbers of new businesses set up by women.

-Ends-

For further information contact:

Monica McCormack, Tesco Personal Finance,
Tel. 0131 523 5533/07802 319 266
Monica.mccormack@tescopf.com

Lisa Loveday, Haggie Hepburn,Tel. 020 7334 7777 lisa.loveday@haggiehepburn.com

Notes to editors:

Survey conducted by Marketing Sciences. Over 500 sole traders surveyed.
The Tesco Business Card is designed for sole traders.
Sole traders are self-employed people with sole liability for their business.
It offers a competitive interest rate, a unique petrol bonus scheme and a useful online accounting tool to help cardholders organise their accounts.
Customers can pick up an application for the Tesco Business Credit Card in a Tesco store or apply online.

Tesco Personal Finance Limited is a joint venture between The Royal Bank of Scotland plc and Tesco

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