Old hands boost start-up success

The business environment in the UK has witnessed a 22 per cent increase in young people starting their own company in the last three years.

While this shows younger people are driven when it comes to achieving the career development they desire, a study by Experian found that 45 per cent fail in the first two and a half years.

However, the study also revealed that the survival rate of new businesses increase if it starts with an older head on the board, as they can offer leadership and management skills younger people may be lacking.

A young director teaming up with someone over 26 led to 39 per cent of businesses succeeding, while the addition of a second older director increased survival rates to 48 per cent.

Simon Streat, managing director of Experian's UK SME business, said: "With young directors often lacking the experience, capital and contacts needed to survive those first few tricky years, our research shows that they shouldn't underestimate the value in partnering with an older director."

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