Latest figures shine a light on the changing profile of UK business directors, with an increasing proportion living in social housing and coming from less affluent backgrounds.

The number of UK business directors in social housing hit an all-time high in 2013 with one in 13 living in accommodation subsidised by the Government, according to new data from Experian.

The trend was driven partly as startups scramble to find investment, but also as the number of first-time directors spiked and an increasing proportion came from less-affluent backgrounds.

Lower barriers to entry have resulted in large growth in the creation of businesses, but the increased competition has seen startups struggle to find funding.

More than half a million businesses were created in the UK last year (515,000, up 8.9% from 473,000 in 2012), with the proportion of first-time directors rising by 12.6% (304,000 in 2013 compared to 270,000 in 2012).

First-time directors in 2013 had less startup capital and came from a lower affluence band when comparing their incomes, property values and net worth to national averages.

However, business survival rates were up year-on-year, with 87% of organisations established in 2011 still alive come the end of 2013, compared to 76% the year before.

The less-affluent first-time directors had a slightly lower chance of survival, with the number of two-year-old businesses still alive come year-end at 84%.

“These figures suggest a shift in how we should view the average UK entrepreneur,” said Max Firth, MD for Experian Business Information Services, UK&I. “It’s not all high-tech startups and Dragons’ Den-style big ideas. An increasing proportion of new business directors are making the most of the lower start-up entry levels; grabbing a mobile phone, a laptop and a flexible workplace, and creating their own jobs and their own opportunities.

“While this increasing population of debut directors should be celebrated, there’s much they can do to improve their chances of success. Some may still lack the experience, capital and contacts needed to survive those first few tricky years.

“So it’s crucial for young entrepreneurs to tap into business-support networks for advice, and they shouldn’t underestimate the value in partnering with a more experienced director if they can. Just as crucially, they need be aware of how others may see their business and the impact this could have on their access to essential services and potential funding opportunities.”

Debut Directors (DDs) and UK start-up entry level – 2009 to 2013