Entrepreneurship

Entrepreneurs are people who devise, set up and run new businesses. They focus on building and growing the business, often for profit or the company’s impact. While all entrepreneurs are self-employed, not all self-employed people are entrepreneurs; entrepreneurs typically develop untested ideas, make high-risk decisions, delegate management to experts and aim to gain buyer interest in their business.

For more information, please visit GOV – business and self-employment, Prospects – self-employment, Investopedia and SBA.

Types of business

There are different types of businesses that you can run, each with its tax implications and legal responsibilities, so it’s best to do your research before deciding which is best for you. Here are short summaries of the most common types of businesses:

- Sole trader – You run the business alone and are personally responsible for its debts. It is simple to set up with complete control but has unlimited liability.
- Partnership – Two or more people share ownership, profits, and responsibilities. Partners are personally liable for debts unless it’s a Limited Liability Partnership (LLP), which offers some protection.
- Limited company (Ltd) – A separate legal entity from its owner(s), meaning personal assets are protected. More administrative work but offers limited liability.
- Franchise – Running a business under an established brand, following their business model. You pay fees but benefit from brand recognition and support.
- Social enterprise – A business that reinvests profits into social or environmental causes while making money. It can be structured as a company or charity.
- Freelancing – Working independently and selling services (e.g., writing, design, consulting). Typically registered as a sole trader or a limited company.
- Charity – A nonprofit organisation with a social, environmental, or community-focused mission. Charities must follow strict regulations and reinvest all funds into their cause rather than distributing profits.

Getting started

Research and planning – identify a gap in the market, conduct market research and create a business plan.
Choose the type of business you wish to create – research which would be best for you.
Register your business – choose a business name, register with HMRC and apply for necessary business licences or permits.
Set up finances – open a business bank account, keep records of income and expenses and set up accounting software or hire an accountant.
Get insurance and legal protection – consider business insurance and understand your contracts, terms and conditions and legal obligations.
Branding and marketing – create a business name, logo and website, set up social media and marketing channels, and develop a pricing strategy and promotional plan.
Set up operations – secure suppliers or stock if needed, establish work processes, get the necessary tools and software, and find a workspace.
Launch and grow – start offering your product or service, collect customer feedback and improve, and network and promote your business.