Britain is at risk of losing young founders to global rivals
The UK is at risk of an exodus of entrepreneurial talent as young founders find themselves being lured away by global competitors.
According to a new report from the Young Entrepreneurs Forum, Britain is losing its edge as a lucrative destination for young people to launch their startups, due to policymakers failing to address challenges that weaken growth.
This includes concerns over the UK’s investment landscape, government initiatives and immigration frameworks.
While the think tank argued that the fundamentals of the UK’s startup ecosystem were strong, problems needed to be addressed in order to stop young founders being enticed away by overseas rivals.
Many young founders are opting for other destinations, including the US and Canada, as well other emerging hubs such as Denmark, known for its streamlined startup process and low costs.
Sean Kohli, chair of the Young Entrepreneurs Forum, a branch of the Entrepreneurs Network think-tank, said: “Britain has no shortage of talent or ambition, but too much of that potential is still held back.
“Culturally, we’ve made entrepreneurship seem like an impossible dream for too many driven innovators.
“The next generation of founders are ready to lead, now Britain needs to be ready to back them.”
Modernise policy
The Entrepreneur Network is calling on the government to modernise its policies towards UK startups in order to keep talent and capital flowing into the country’s startup scene.
Recommendations included increasing the generosity of tax relief schemes for startups and abolishing stamp duty on shares, a call which has picked up momentum in recent months following speculation the Treasury is considering doing so.
The think tank also recommended modifying the immigration rules to create accessible and competitively priced pathways for global talent as well as working with the Regulatory Innovation Office to remove barriers preventing innovation in emerging sectors such as biotech.
Eamonn Ives, research director at The Entrepreneurs Network, said: “The strength of Britain’s economic future hinges on its ability to allow young founders to flourish.
“Promising entrepreneurs at the start of their journey have the world at their feet and the government should be doing all it can to make sure they’re building here in the UK, not elsewhere.
“Britain already gets a lot of the hard stuff right when it comes to nurturing entrepreneurship, but with other nations quickly catching up, we cannot afford to get complacent.”