UK founders are feeling forgotten – and they’re calling for change
According to new research from Virgin StartUp, more than half of UK small business owners (58%) feel ignored by politicians, despite big promises to back Britain’s entrepreneurs. An alarming 57% are worried about whether their business will survive the next 12 months.
The figures come from Virgin StartUp’s latest Founder Barometer survey, which takes the pulse of hundreds of entrepreneurs across the country. The message from the data is clear: founders are resilient, ambitious, and brimming with ideas, but they need real, targeted support to thrive.
Business owners are urging Westminster to deliver:
A long-term national strategy for SMEs (66%)
Increased support for regions beyond London (69%)
A full overhaul of outdated business rates (63%)
“As a founder of a luxury dessert brand, I’ve experienced first-hand how overlooked small businesses can feel,” said Cathy Homer, founder of Posh Pudding Pots. “We’re not just building brands – we’re creating jobs, innovating and contributing to our local economies. But we can’t do it alone.”
This year’s biggest challenge remains the cost-of-living crisis, although fewer founders flagged this than in 2024 (33%, down from 52%). Worries about another recession (20%) and high tax rates (19%) are also top concerns.
Access to finance is another major hurdle. Almost one in five founders cite it as a significant barrier, and 62% want better support to unlock capital, especially as traditional lenders continue to tighten their criteria.
Despite the pressures, many founders are still betting on a better future. Half say they’re optimistic about their finances over the next six months, up from 45% last year. Founders with teams are especially hopeful, almost 50% of those with two or more employees expect to be in a stronger position by the end of the year.
“Small business founders are the backbone of the UK economy,” said Andy Fishburn, Managing Director of Virgin StartUp. “Yes, they’re facing serious headwinds – but it’s inspiring to see so many continue to push forward with ambition, creativity and grit.”
Innovation is alive and well. Nearly half (45%) of founders have started using AI tools in their businesses this year, up from just over a third (34%) in 2024. And they’re feeling more positive about it too: 54% believe AI will have a beneficial impact, whether by saving time, sparking creativity or driving smarter decision-making.
Meanwhile, community remains a lifeline. 47% say their network has helped them find new clients, 30% rely on it for advice, and over a quarter (26%) say it’s provided emotional support, which is more important than ever, as burnout among founders rises.
More than half of those surveyed (53%) want to see improved support for underrepresented founders, including women, ethnic minority founders, disabled and neurodivergent entrepreneurs. The data suggests there’s still a long way to go:
Just 44% say the current environment supports ethnic minority founders
Only 40% feel it’s supportive for neurodivergent individuals
49% feel women are supported, but only 2% of venture funding goes to all-women founding teams
Virgin StartUp has been supporting UK founders for over a decade, helping early-stage businesses access funding, advice and community. Since launching in 2013, it’s backed more than 7,000 entrepreneurs with over £90 million in Start Up Loans.
Virgin StartUp also runs a thriving founder community platform, where aspiring and early-stage entrepreneurs can connect with experts, get 1:1 advice, join live events and build their businesses with others who get it.