The UK is a significantly more entrepreneurial society than it was at the start of the millennium, the world’s largest survey of entrepreneurship has found. This, according to an update from NatWest.
For the first time since the Global Entrepreneurship Monitor records began “a quarter of a decade ago, just under one in three UK adults (30%) now either run their own business or plan to start a business within the next three years,” the update from NatWest revealed.
The survey released by NatWest also found that “there has been a three-fold increase in the level of early-stage entrepreneurial activity by women in the UK since 2002 with activity growing from just over 3.5% to 10% during the period.”
NatWest further noted that Despite changes in the UK’s demographics “since the millennium, one statistic has remained relatively constant – immigrant and non-white ethnic populations continue to be the most entrepreneurial groups in the UK.”
The Global Entrepreneurship Monitor is reportedly “the world’s largest survey of entrepreneurship, surveying more than 10,000 entrepreneurs worldwide each year and conducting more than 300 interviews with experts in entrepreneurship.”
As mentioned in a blog post by NatWest, it asks how “attitudes in entrepreneurship have evolved, identifying key trends in entrepreneurial activity and aspirations.”
NatWest pointed out that “as entrepreneurial activity has increased in society, it has become more common for entrepreneurs to possess multiple motivations for running a business.”
NatWest also mentioned in a blog post that “over half of entrepreneurs now cite making a difference in the world as an important driver of their engagement in entrepreneurship, with women more likely to possess pro-social motivations.”
The survey shared by NatWest also found that “a fear of failure is a major inhibitor for people considering starting a new business. 58% of UK adults not engaged in entrepreneurship stated that fear of failure would prevent them from starting a business, with women more likely than men to identify fear of failure as a barrier, despite recognizing good start-up opportunities.”
The UK ranked 22nd out of 49 participating “economies on the quality of its entrepreneurship ecosystem. Experts noted a weakening in the availability of sufficient entrepreneurial finance, government policies in relation to business support, and physical infrastructure as areas requiring the government and policymakers attention.”
Darren Pirie, Head of the NatWest Accelerator program, said:
“The findings of this report once again confirm that the UK is a hive of entrepreneurial activity, with around one in three now either running a business or planning to start one. It’s good to see that early-stage business activity is on the rise across all regions of the UK and that the motivations for starting a business are becoming multifaceted. Entrepreneurs are moving away from just opportunity or necessity as the key driver, with female founders especially valuing social considerations.”
As noted in the update:
“There’s a vital need to address fear of failure, which is actively holding back women from starting businesses. We have 1000 women in business specialists across NatWest ready to provide expertise and tangible support, and we’ve recently launched the Begin programme that supports women to get set up in business. Last year 50% of support from NatWest enterprise programmes went to women and 34% went to people from ethnic minority backgrounds, which backs up the GEM finding that non-white ethnic groups have become a cornerstone of the UK’s entrepreneurial activity.”
Mark Hart, Professor of Small Business and Entrepreneurship at Aston Business School, who leads the GEM UK team, said:
“The new Labour government has inherited a more entrepreneurial society than when it left office in 2010 but still faces challenges to fully realise the potential of UK’s entrepreneurs in achieving its aim of stimulating growth in the UK economy. Prime Minister Starmer on taking office stated, “Our work is urgent, and we begin it today” and the findings of our report provide some indication of the work that lies ahead across his whole ministerial team and not just for Gareth Thomas the new Small Business Minister.”