Half of professionals 'would use redundancy package to launch start-up'

Nearly half of professionals would use their redundancy package to launch a start-up if they were laid off, a new survey has found.

In the poll, by professional networking site LinkedIn, 48% of respondents said that they would set up their own business with a lump sum. Some 22% said that they would live off the money until securing a new job, and 17% that they would like to take a career break or holiday.

Despite entrepreneurial enthusiasm, few respondents showed faith in big business or the property market as investments. Only 9% said that they would put their money into shares or property, and just 1% that they would invest in a friend's business.

While current business owners were the most likely to go it alone (75%), this group made up just 4% of the survey sample: the majority (70%) of respondents were currently being managed by employees at a higher level.

John Wright, national chairman of the Federation of Small Businesses, told More Than Business News that he was not surprised by the results. "Now is a great time to become self-employed if you have a good business plan and have found a niche."

He noted that entrepreneurs can take advantage of the Enterprise Finance Guarantee and called on the Government to re-introduce the Enterprise Allowance Scheme - a weekly benefit to help those who have been made redundant get back into work by becoming self-employed.