4% Of British Founders Believe The Government Understands Needs, Survey Finds

A growing chorus of British entrepreneurs say Westminster is still missing the mark on what fast-growing companies need to thrive. According to our inaugural Entrepreneurs Survey, a striking 84 per cent of founders believe the Government does not understand their needs – while barely 4 per cent think it does.

The survey, conducted with research agency Public First, paints a picture of mounting frustration as fundraising dries up, talent shortages bite, and uncertainty over economic policy deepens.

One in ten founders say they expect to leave the UK in the next 12 months, and one in six plan to sell their businesses outright. Asked why, respondents pointed to high taxes, complex regulation and fears of a looming downturn. Just 19 per cent are optimistic about the wider UK economy over the next year, versus 63 per cent who are pessimistic – even though 69 per cent remain upbeat about their own firms.

Sean Kohli, Chair of the Young Entrepreneurs Forum, warned the drift abroad is no longer a trickle:

“It’s concerning to see entrepreneurial talent leaving the UK. This has now developed into a significant issue that requires attention. Britain would benefit from some course adjustments. Too often, we place hurdles in the path of risk-taking and innovation. Naturally, ambitious entrepreneurs and founders will be drawn to ecosystems that actively support their growth and vision.”

Raising capital tops the list of pain points. Three-quarters of founders (75 per cent) say it is currently difficult to secure investment in Britain, a finding echoed by Irina Pafomova, Co-Founder of Zestic AI and an active early-stage investor:

“Being a founder of an AI business as well as an early-stage investor, I find that unlike in the US, the UK funding market has neither the speed, nor sufficient capacity to support ambitious businesses. In our space, things are moving at lightning speed, and many founders are distracted by constant fundraising (in small chunks) rather than focusing on building the business. While my previous business was investor-funded from the start, this time we are building the business organically, focusing on early revenue.”

Recruitment is scarcely easier – 64% of respondents say hiring staff is difficult, and more than half (55 per cent) blame high employment taxes such as National Insurance. Immigration policy is another flashpoint: 88 per cent rate it as important to the UK ecosystem, yet visa barriers persist.

Anne-Laure Le Cunff, Founder of Ness Labs, says that talent mobility and innovation go hand in hand:

“As an immigrant founder building a distributed team, I’ve seen first-hand how access to global talent not only fuels innovation but also drives long-term growth. Yet some of the most brilliant people I collaborate with simply can’t get visas. If the UK wants to stay competitive, it needs to make it easier for ambitious people from anywhere to build here.”

When drilled on policy specifics, 84 per cent held a negative view of the overall tax burden, while 65 per cent criticised the regulatory load. Asked where the Government should focus trade negotiations, a majority (56 per cent) prioritised closer ties with the European Union, ahead of “rest-of-world” (26 per cent) or the United States (14 per cent).

Eamonn Ives, Research Director, said the figures should serve as a wake-up call:

“Entrepreneurs and the start-ups they found are a critical source of economic growth and innovation, so it’s essential for policymakers to know how to support their needs. The fact so few founders believe the Government understands what they require to grow is highly concerning. Whether it’s by lowering the burden of taxation or simplifying our immigration system, the Government should be unstinting in ensuring that Britain is set up to actively support wealth creation here within our own shores. If it doesn’t, we shouldn’t be surprised to see great companies being founded elsewhere instead.”

Despite the litany of obstacles, entrepreneurs haven’t lost their appetite for building businesses: 77 per cent say life as a founder has become harder since they started, yet 55 per cent would still encourage someone else to take the plunge.

Entrepreneurs are nothing if not optimistic – 69 per cent are optimistic about their business despite the headwinds. Just imagine how high that would be if they also believed politicians were backing them as much as they back themselves.