Entrepreneurs blast ministers: ‘They don’t get us’
Over eight in 10 entrepreneurs say the government does not understand their needs, a survey of founders has said, with over half citing taxes and burdensome red tape as major barriers to their growth aspirations.
The poll’s stark findings reveal that just four per cent of business owners believe the Starmer administration has a grasp on what they need to succeed, in a further sign of the government’s increasingly strained relationship with business.
Founders also raised the alarm on the fundraising environment for firms in Britain – despite the country’s historically vibrant venture capital industry – with three quarters saying they were struggling to attract seed and later-stage investment.
The cohort pointed the finger of blame at the twin burdens of tax and regulation for their struggles. Over eight in 10 said taxation was too high and nearly two thirds (65 per cent) flagged excessive red tape was acting as a handbrake on their ambitions.
Nearly two thirds (62 per cent) also said they were struggling to find skilled staff to fill vacancies.
‘Don’t be surprised’ to find entrepreneurs moving abroad
Eamonn Ives, research director at The Entrepreneurs Network, which commissioned the study, said it was “highly concerning” so few founders have faith in the government to help their growth aspirations.
“Whether it’s by lowering the burden of taxation or simplifying our immigration system, the government should be unstinting in ensuring that Britain is set up to actively support wealth creation here within our own shores,” he added.
“If it doesn’t, we shouldn’t be surprised to see great companies being founded elsewhere instead.”
The poll’s findings will pile further scrutiny on the government’s attempts to breathe life into Britain’s moribund economy, after it was rocked by several other high-profile interventions and damning pieces of research.
Earlier this month, James Dyson launched a scathing attack on the UK’s “myopic” public sector, which he said risked killing entrepreneurialism in Britain.
Writing in The Sun, the vacuum tycoon said he was worried the UK “no longer has the aspiration to create the Dysons of the future”, and that “those who are starting new businesses are doing so elsewhere”.
Dyson’s warnings were reflected in a separate poll of business owners by the audit shop S&W in June, which found four in 10 respondents were mulling relocating their firms overseas.
A Department for Business and Trade spokesman said: “This government is supporting entrepreneurs to thrive – they will be a key theme of our Small Business Strategy published later this year and our Plan for Change to drive economic growth across the country.
“We are very supportive of start-up accelerators and other forms of support for entrepreneurs to help them build and grow their businesses across the UK.”