Sole traders who have pursued their passion and turned their hobby into a successful business idea are contributing a staggering £39.6 billion to UK business turnover, according to new research by specialist insurer Hiscox and the Centre for Economics and Business Research (Cebr).
Findings reveal that almost one in four (23 per cent) sole traders fulfilled their dream of turning a hobby into a business.
Looking at the whole UK sole trader community, the majority are still enthusiastic about their work even if it did not start from a hobby, with 90 per cent of all sole traders stating they have a passion for their business.
This passion is helping them to achieve a turnover which is on average 55 per cent higher than those who don’t share quite the same enthusiasm.
The research also reveals that more than half of all sole traders who took the start-up plunge were motivated by work life balance (52 per cent) and a desire to be their own boss (61 per cent).
Flexibility of working hours and location – (84 per cent) and (54 per cent) respectively – and the freedom to define their own business (52 per cent) also featured high on the list of self-assessed advantages to becoming a sole trader.
More than two in five (43 per cent) sole traders have their idea and turn it into a business within just a year, showing that when it comes to something you care about, many are quick to make the leap. In fact, the UK has seen a significant rise in the number of sole traders in recent years; with more than 3.5 million sole traders at the start of 2020, up 28 per cent from 2.8 million at the start of 2010.
Isha Patel, small business insurance expert at Hiscox, said: “The career advice to ‘do what you love’ is front and centre among the impressive number of sole traders who are now making a living from their hobby.
“Our findings show that those business owners with a passion for their work have a 55% higher turnover on average than other sole traders, which just goes to show the impressive economic impact that passion for the day job can have when it comes to running a successful small business.”
Psychologist Lee Chambers, added: “Passion is an incredibly powerful emotion, and in business, it can help to drive a positive mindset and a ‘never say die’ attitude for business owners. Launching a business on your own can be a daunting experience, so having enthusiasm for the world you are operating in can give business owners that extra boost to keep going, and the edge over competitors.
“The last few years have been a time to reset for many, with lots of people reconsidering their priorities when it comes to the world of work, and so I wouldn’t be surprised to see more people turning to a more independent way of working in the years ahead.”