A major annual study of entrepreneurship has found that the percentage of working-age adults either running a new business or intending to start one within the next three years is at the highest level since it first began conducting the research in 1999.
According to the latest findings from the Global Entrepreneurship Monitor (GEM) UK report, the figure was 36% in 2024.
The survey of 8,229 adults aged 18 to 80 said “immigrants and ethnic minorities are consistently the most entrepreneurial groups”, with the rate of the non-white population starting a new business or running a company that is less than three years old standing at 19.1%, compared to 10.4% within the white population.
In addition, early-stage entrepreneurial activity among women has grown threefold since 2002, rising from 3.5% to 10%.
The report also revealed the growth of AI being embraced by start-ups, with 29% of early-stage entrepreneurs saying it is “very important” to their day-to-day operations, and 72% believing it will be “somewhat” or “very important” to their business model within the next three years.
But despite the growth, the study warned that progress in start-up creation is hampered by persistent weaknesses in the UK’s entrepreneurial ecosystem.
Entrepreneurs said the UK is insufficient in several critical support areas, including access to finance, government business support, and physical infrastructure.
The report said the UK ranks 29th out of 54 countries for its entrepreneurship ecosystem. In 2020, it was rated as satisfactory with a score of 5.0 out of 10. Since then it was declined each year, falling to 4.5 by 2024.
The UK’s ecosystem score is lower than France, Germany and the US. The average score for all nations in 2024 was 4.79. The top scoring country for its entrepreneurial environment in 2024 was United Arab Emirates with 7.12.
Mark Hart, professor of entrepreneurship and enterprise policy at Warwick Business School, who leads the GEM UK team, said:
“The government’s ‘Backing your business: our plan for SMEs’ was published in July 2025 and seeks to address these weaknesses and ensure the UK becomes the best place to not only start a business but to scale them as well.
“With its emphasis on addressing late payments, leadership skills, innovation, digital transformation and a sustainable route to net zero, the agenda is to be welcomed. Implementation will be key, and the associated Business Growth Service, along with the local Growth Hubs in England, will play a crucial role.
“Perhaps we will get to a point not too distant in the future when the UK can transform its impressive record for launching start-ups into longer-term success stories – enabling small businesses to survive, thrive, and grow.”