As reported by SME Web, two-thirds of small business founders in the UK express confidence in their businesses’ financial strength over the next six months, yet nearly a quarter believe that government policies haven’t fostered an environment for success, according to Virgin StartUp’s bi-annual Founder Barometer
The survey also revealed a strong sense of inequality, with fewer than one in five (18%) male founders saying that government policy hasn’t created an environment where their business can thrive – with more than a third (34%) of female entrepreneurs feeling the same. The inequality also spreads beyond genders, with 49% of founders from the North feeling the political landscape and policy changes hasn’t created a positive environment, compared with 21% in the South.
When asked how their business could be better supported, extending the SEIS and EIS schemes and business tax reductions featured high on founders’ wish lists – areas that were both addressed in the government’s most recent Autumn Statement. 27% of founders also called out the need for greater support for underrepresented founders – female, Black, Asian and minority ethnic, and disabled founders, as well as better access to Start Up Loans (27%) and greater access to mentorship programmes and schemes (24%).
Yet optimism is high, with the majority (96%) of new business founders saying they are planning to hire at least one full-time member of staff, with more than half (51%) planning to hire at least four members of staff in the next year.
Andy Fishburn, left, Managing Director, Virgin StartUp, commented: “It’s important to hear directly from small business owners and start-ups which is why we decided to launch our bi-annual Founder Barometer survey. Despite a testing year, it’s encouraging to hear that many business founders are invigorated and are heading into the new year with a positive outlook.”
Being mindful of the environment and building a greener business was also a key priority for many. More than half (58%) believe their customers care about sustainability, leading to an overwhelming number of founders (92%) exploring ways to make their operations more sustainable in the next 12 months.
UK founders continue to list the cost-of-living crisis (29%) and the risk of another recession (22%) amongst the biggest challenges facing their businesses. Fishburn added: “The business community is no stranger to dusting itself off and tackling hurdles head on, but now more than ever, with several challenging economic issues surrounding us, we need to be honest with ourselves and look at how and where organisations and our peers can support one another through what are undoubtedly unsure times”.
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