Press Releases

'Trinity of Fears' is pushing entrepreneurs to the web instead of the high street

London, 26 August 2003 - According to new research* commissioned by ecommerce software developer Actinic, there is a "trinity of fears" making Britain's next generation of retailers too scared to start up new businesses on the high street and pushing them towards the web.

Aspiring Richard Bransons and Anita Roddicks cite three major issues that are stopping them from taking the plunge:

  • Fear of robbery, assault and other crime (cited by 61% of respondents)
  • Lack of funds (cited by 51% of respondents)
  • Not attracting enough customers (cited by 31% of respondents)

As a result, potential entrepreneurs find the web more attractive: 68% of would-be retailers say they would sell online if they had the necessary technical support. UK shoppers spent £8.8 billion online in the 12 months to July 2003.

"The trinity of retailing fears - crime, cash and customers - is holding back Britain's retail entrepreneurs. But selling online eradicates the danger of physical crime because there is no shop to raid or physical stock to shoplift," says Chris Barling, chief executive officer of Actinic, which powers over 10,000 transactional websites. "And of course starting an online shop is far quicker and cheaper than opening a high street store and can reach far more customers on a global scale.

"Britons are more than ready to make a success of online retail, as Martha Lane-Fox has proven with lastminute.com. Compare the growth of that company to, say, Thomas Cook which had no choice but to take decades growing a high street presence."

The research also shows that Britain remains a 'nation of shopkeepers', with running a retail business the most popular new business idea:

  • 4 in 10 would-be entrepreneurs want to set up a retail business;
  • 12% would go for professional services (accountancy firm, legal practice etc);
  • 6% opted for a manufacturing company;
  • 4% would start a health clinic (dentist, chiropodist etc);
  • 4% cited a café, sandwich shop or coffee bar.

What would-be retail entrepreneurs want to sell online

Goods

Percentage

Gifts

18

Clothes

18

Food

14

Hobby goods (comics, model kits etc)

11

Leisure equipment (bikes, camping etc)

4

Other (including books, pet shop, computer equipment, garden goods, educational goods, music and electrical)

35

* The research, conducted by Ipsos, was a survey of 1000 UK citizens over the age of 25. Use of research figures to be attributed to Actinic Software.

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