THE UK IS ENTREPRENEURIAL – BUT THERE ARE CHALLENGES

The Global Entrepreneurship Monitor (GEM) has just published its UK National Report, in conjunction with NatWest. It has taken a look at entrepreneurship in the country, whilst asking ‘how have attitudes to entrepreneurship evolved and what have been the key trends in entrepreneurial activity and aspirations since 1999?’.

According to the report, there has been a remarkable increase in the level of early-stage entrepreneurial activity by women, while immigrant and non-white ethnic populations continue to be the most entrepreneurial groups in the UK.

Other highlights include:

• Despite the constant rise in the perception that the fear of failure would prevent people from starting their own business, as well as the poor growth record of the economy, the UK is a significantly more entrepreneurial society than it was at the start of the Millennium.  
•  For the first time since GEM records began, just under 30% of working-age individuals in 2023 either intended to start a business within the next three years, were actively trying to start a business, or are running their own business.  
• There has been a remarkable increase in the level of early-stage entrepreneurial activity by women in the UK since 2002 from just over 3.5% to 10%.
• Despite changes in the demographic composition of migration, one statistic has remained relatively constant: immigrant and non-white ethnic populations continue to be the most entrepreneurial groups in the UK.
• But fear of failure remains a formidable obstacle to new start-ups, especially for women.

Commenting on the report, Mark Hart, Professor of Small Business and Entrepreneurship at Aston Business School, who leads the GEM UK team, said: “The new Labour Government has inherited a more entrepreneurial society than when it left office in 2010 but still faces challenges to fully realise the potential of the UK’s entrepreneurs in achieving its aim of stimulating growth in the UK economy. “

Prime Minister Starmer on taking office stated, “Our work is urgent, and we begin it today” and the findings of our report provide some indication of the work that lies ahead across his whole ministerial team and not just for Gareth Thomas the new Small Business Minister.

“The conditions that allow entrepreneurs to sustain and grow their businesses have been weakening for a number of years now and urgent action is needed in the areas of entrepreneurial finance, business support and physical infrastructure to ensure the UK can facilitate the growth ambitions of thousands of small business leaders – the majority of whom are outside London.”

“Entrepreneurial education at all levels continues to remain a relative weakness in the UK compared to many international comparators despite numerous public and private initiatives over many decades - the practice of teaching basic business skills is still insufficiently widespread.” 

The full Global Entrepreneurship Team (GEM) UK report can be viewed here. It is well worth a read if you are interested in trends, particularly against the backdrop of the UK games industry – home to so many start-up studios and entrepreneurs.

I’d love to hear your thoughts!

Photo by Microsoft Edge on Unsplash