One in ten startup owners blame Government for business failure

SME Publications/ SME XPO 2024

One in ten startup owners say a lack of Government support was behind the failure of their business, or that of someone they know, amid fears of a “wasted generation” of entrepreneurs due to the economic downturn.

Ahead of Chancellor Jeremy Hunt’s Autumn Statement, business comparison site Beasy commissioned an independent Censuswide poll of 1,000 businesses to understand the role the Government can play in supporting the UK’s start-up community. The study found new policies that address interest rates and energy costs (64%) and better financial support for startups (45%) were the biggest areas of concern for start-up business owners..

Arif Miah, CEO and Founder of Beasy, commented: “While we have seen examples of great innovation during times of economic hardship, we are desperate to avoid a wasted generation of entrepreneurial talent together with a significant decline in their enthusiasm. Two key priorities for the Government have emerged from this study that will help support the lifeblood of the UK economy.”

The study also found almost two thirds (61%) of entrepreneurs are experiencing more stress and anxiety due to economic uncertainty, most keenly felt among female start-up owners (68%) compared to male owners (53%). These uncertainties are primarily perceived in sales, media and marketing businesses (73%), architecture, building and engineering (72%) and retail, catering and leisure (65%).

Further, almost half (44%) don’t feel confidence about their ability to grow the business in the current economic climate, with a similar number (41%) feeling less confident than they did this time last year.

The three biggest reasons for this lack of confidence are the cost of business tools and services (50%), the cost of energy (48%) and customers looking to spend less amidst the current economic outlook (48%).

Miah continued: “The UK’s small business community has time and again proven its resilience in the face of uncertainty, but in order to remain competitive and operational amidst today’s challenging economic climate, the government must offer more favourable conditions to budding entrepreneurs.”

SME Publications/ SME XPO 2024