More than a fifth of UK-based founders plan to leave the country within the next 12 months, according to a survey published this week by the London-based Entrepreneurs Network.
The report paints a bleak picture of founders’ confidence in the UK government, suggesting just 3% believe ministers understand their needs, while 86% disagreed.
Less than two weeks after the “Londonmaxxing” meme saw founders and investors alike evangelising the capital’s benefits, the survey found nearly a third (31%) of UK founders felt downbeat about their prospects over the next year, with 76% pessimistic about the wider economy.
More than three quarters of founders (76%) said fundraising is currently difficult, while 55% think innovation is being held back. When asked, 21% of founders said they expected to leave the UK within the next year.
The data also hints at shifting political allegiances. The right-wing Conservative Party leads for popularity among founders on 25%, ahead of the more centrist Liberal Democrats (16%), hard-right Reform (11%) and leftist Green Party (6%).
Meanwhile, the governing Labour Party trails on just 8%, with a sizeable chunk of the founders surveyed still undecided on who they support.
“Entrepreneurs are inherently optimistic, so when confidence drops to this extent, it’s worth paying attention,” said Philip Salter, Founder of The Entrepreneurs Network.
“Founders are telling us that the current climate is making it harder to invest, hire and innovate — and that has long-term implications for the economy.
“Politicians across all political parties need to double down on their efforts to rebuild trust by focusing on the practical barriers entrepreneurs face day in and day out.”
