The State of UK
Entrepreneurship

58% of UK entrepreneurs are optimistic about their own business over the coming year — down from 63% in Wave 4 and the lowest reading across all five waves (it was 69% in Wave 1). That persistent gap with their far darker view of the wider economy remains one of the defining tensions in the data.

78% of founders are pessimistic about the British economy, with just 4% feeling optimistic — the gloomiest reading yet, up from 73% in Wave 4. Pessimism has climbed steadily since Wave 1's 63%, underscoring a deep structural scepticism about UK economic conditions that shows no sign of easing.

A rare bright spot in an otherwise challenging landscape: 65% agree the UK is an easy country to start a business in — holding steady from Wave 4 and broadly in line with every wave since Wave 1. Starting a business remains the clearest positive in the data.

48% say it is easy to start a new business here, with 27% saying it is very easy. While the very-easy share stays high, the overall 'easy' figure has slipped from 52% in Wave 4 — reinforcing that the real challenge comes later, when founders try to scale.

Only 14% agree the UK is an easy place to scale — essentially unchanged across all five waves. This persistent gap between starting and scaling remains the report's central finding: Britain is an excellent launchpad but a poor runway. Strong disagreement has climbed to 32%.

79% agree that entrepreneurial life has become harder, with 48% strongly agreeing — the highest level of difficulty recorded across all five waves, up from 72% in Wave 4. The sense of mounting pressure from regulation, taxation and market conditions is stronger than ever.

Raising investment remains the single hardest thing to do in the UK: 77% of founders find it difficult, with 35% saying very difficult. Difficulty has been entrenched across all five waves, and the pipeline between ideas and capital shows no signs of easing.

63% of founders find it difficult to hire new staff, with 21% saying it is very difficult — the toughest hiring market across all five waves, up from 55% in Wave 4. Just 21% find it easy, and that share has never meaningfully improved.

58% find it difficult to undertake innovation in the UK, while 28% find it easy. Difficulty has risen from 54% in Wave 4 to its highest level, suggesting innovation is becoming harder even as founders continue to invest in it.

89% of founders view UK taxation negatively, with 59% choosing very negative — the most negative reading across all five waves, up sharply from 82% in Wave 4. Frustration with the tax burden has reached a new peak.

70% of founders view UK regulation negatively, up modestly from 68% in Wave 4. Regulation remains persistent friction rather than an acute crisis — negativity has held above 65% across every wave.

88% disagree that the government understands entrepreneurs, with 57% strongly disagreeing — the highest level of disconnection across all five waves, up from 79% in Wave 4. Only 3% agree, a near-total collapse of trust with Whitehall.

The Conservatives surge to 42%, now the clear leader on understanding entrepreneurs — up sharply from 30% in Wave 4. But 'none of the above' still draws 27% and 13% are undecided, meaning two in five founders still feel no party fully speaks for them. Labour scores just 8%.

45% would encourage another founder to build in the UK, while 33% would not — a marked cooling from the 54% who said yes in Wave 4. The net positive is now wafer-thin, with only 21% unsure, suggesting founders have made up their minds — for the worse.

45% plan to increase headcount over the next year, up slightly from 43% in Wave 4. But the share expecting to shrink has edged up from 10% to 14%, a more cautious workforce outlook despite resilient hiring intentions.

36% expect R&D spending to increase over the coming year, up from 34% in Wave 4, while those expecting to cut R&D rose to 15%. Investment in innovation is holding up even as the broader environment worsens.