Half of small business founders in the UK are concerned their business won’t survive the next 12 months, according to a new survey.
This is a stark difference from the 11% of founders who felt the same way in November 2023, per Virgin StartUp’s second annual ‘Founder Barometer’ report.
The past two years have been difficult for VC-backed tech companies, with valuations taking a dip, less capital available, and layoffs sweeping across businesses of all sizes as investors push for a focus on profitability.
VirginStartUp, a not-for-profit, found that fewer founders are confident their business will be in a stronger financial position in six months, decreasing from 66% in November 2023 to 45% today.
While some are optimistic about the future of the tech industry, business founders are feeling the pressure and are calling on the new government for better support.
Recommendations from the more than 500 surveyed founders include scrapping business rates (33%), increasing support for local regions outside of London (32%), cutting corporation tax (26%) and raising the VAT threshold (24%).
These suggestions come as the cost-of-living crisis continues to bite with more than half (52%) of founders admitting this is their biggest concern, a huge increase of 23% compared to last November’s total.
Andy Fishburn, managing director at Virgin StartUp, said: “It’s evident that many founders are feeling financial and emotional uncertainty and need support now more than ever. SMEs support 27 million jobs across the nation and collectively account for £4.5tn in annual turnover in the UK.
“The new government must recognise the significance of each and every founder in supporting the economic health of our nation, and recognise the mounting pressures heaped on UK founders in this day and age.”
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