Icing on the cake for entrepreneurs

This niche market is growing at 50% per year and is attracting dozens of business start-ups in the UK…

We’re talking cupcakes. A market that is estimated to be worth around £7m in the UK currently - and growing. A good piece in the Independent describes the entrepreneurial activity in this market - particularly from the so-called “5-9ers”.

5-9ers are a relatively new breed of entrepreneurs - people who have a day job and who run their own businesses in the evening. A great way to test the water with a new business idea.

As for cupcakes, the market is a great example to use with students to explain the concept and importance of finding a market niche. The process of adding value - e.g. use ingredients, complexity of cupcake designs and toppings could also be used.

Is there a way to use this as an example of sources of finance too? Of course - you can explain that cupcake start-ups tend to use self-raising finance