The Evolution of Entrepreneurial Experience: Novice vs. Habitual Entrepreneurs

The 2024 UK StartUp Awards, which attracted over 1,200 applicants, provides valuable insights into the diverse entrepreneurial journeys across the UK. These applicants reflect a broad spectrum of experience, from first-time founders to seasoned entrepreneurs managing multiple ventures. By examining the data, key trends emerge about the challenges, opportunities, and strategies employed by different types of entrepreneurs, shedding light on how experience shapes entrepreneurial success.

Entrepreneurship is increasingly seen as a viable career path, with 60% of respondents identifying as first-time or novice entrepreneurs. However, 40% have prior entrepreneurial experience, revealing notable trends consistent with broader research. The higher percentage of female first-time founders (60%) compared to males (45%) aligns with studies suggesting women often start businesses later in their careers, bringing prior professional experience into their ventures.

Tech entrepreneurs are less likely to be first-time founders (48%) than non-tech entrepreneurs (55%), reflecting the complexities and capital demands of technology-based businesses which often necessitate prior experience. Regionally, first-time founders are slightly more prevalent outside prosperous areas (54%) than within them (51%), possibly due to barriers such as limited access to capital and networks in less urbanised regions. Younger entrepreneurs (18–34) are significantly more likely to be on their first venture (64%), reflecting a trend of experimentation with entrepreneurship early in their careers.

Habitual entrepreneurship, encompassing portfolio and serial entrepreneurs, is a key subset of the entrepreneurial ecosystem. Portfolio entrepreneurs manage multiple businesses simultaneously, leveraging synergies to mitigate risks, while serial entrepreneurs sequentially start, grow, and exit businesses, refining their approach with each new venture. Habitual entrepreneurs, accounting for 37% of the dataset, often bring valuable experience in managing risk, scaling operations, and building networks although only 15% have started three or more businesses, indicating that pursuing multiple ventures remains relatively uncommon.

Of the habitual entrepreneurs, 19% have exited one business before starting another, signifying their ability to navigate the complexities of scaling and selling ventures and exiting a business profitably is often viewed as a hallmark of entrepreneurial success. Concurrently managing multiple businesses is less common (12%), with these entrepreneurs typically leveraging diverse interests or complementary business models. A smaller subset (6%) combines exiting businesses with retaining ownership of others, exemplifying a hybrid approach to entrepreneurship.

Male entrepreneurs are more likely to engage in habitual entrepreneurship, aligning with research showing women are less likely to pursue serial or portfolio ventures. Non-tech entrepreneurs are also more likely to manage multiple businesses, possibly due to the specialised focus required in tech start-ups. Older entrepreneurs (35+) dominate in serial and portfolio entrepreneurship, leveraging their networks, experience, and capital, whereas younger entrepreneurs tend to focus on their first ventures. Interestingly, regional differences are minimal enabling similar opportunities in both prosperous and less affluent areas.

To encourage habitual entrepreneurship, policymakers should focus on creating a supportive environment that enables experienced entrepreneurs to flourish. Providing tailored access to finance, such as dedicated funding streams, reinvestment incentives, and alternative financing options, can help habitual entrepreneurs launch and grow multiple ventures. Simplifying business processes, including streamlined registration, tax relief for multiple ventures, and support for smooth business exits, can make it easier for entrepreneurs to manage their portfolios effectively.

Policymakers should also address regional and sectoral disparities by establishing entrepreneurial hubs in underserved areas and extending support to diverse industries beyond technology. Culturally, celebrating entrepreneurial success, normalising failure, and addressing barriers faced by underrepresented groups can foster a more inclusive entrepreneurial ecosystem.

This analysis underscores the diverse paths entrepreneurs take, highlighting the unique challenges and advantages of both first-time and habitual entrepreneurship. While first-time founders often bring creativity, innovation and new perspectives, habitual entrepreneurs provide stability, expertise, and a proven ability to scale ventures successfully. More importantly, both groups play essential roles in driving economic growth and innovation across industries and regions.