New figures from the London Stock Exchange reveal that some 500,000 people in the UK are expected to become involved with a start-up business this year.
However, a fifth of these will stop trading within the first 12 months, according to Startups.co.uk.
Matt Thomas, editor of Startups.co.uk, said: "When starting a new business it can be lonely and extremely difficult to gain the recognition that you deserve and need in order to gain client and customer loyalty."
Nevertheless, Stephen Alambritis from the Federation of Small Businesses (FSB) says that the economic climate in Britain today is about right to start up a new business venture and that the huge number of failures is simply "the nature of the system in the UK".
Mr Alambritis said: "The economic and financial climate is right for setting up in business, the property climate is right, the regulatory burden and climate is leading towards those entrepreneurs staying self-employed."
When feeling your way in a new business, experts suggest that it is always advisable to take out sufficient insurance and seek guidance.
