- 40% of UK business owners report they have come close to shutting down in the last six months.
- 50% of entrepreneurs face difficulties accessing financial support for their businesses.
- 65% believe that UK business taxes are excessively high.
- Despite challenges, 60% of business leaders are optimistic, anticipating revenue growth in the coming year.
The Entrepreneurs Network and Sumer, a leading UK mid-market accountancy firm for SMEs, have released the United Growth Report, highlighting the challenges faced by UK small and medium-sized business owners.
The report, based on a survey of 610 entrepreneurs across twelve UK regions, will be introduced today at a special House of Lords reception by Kevin Hollinrake, Shadow Secretary for Business and Trade.
Is the outlook entirely bleak?
With 44% of respondents acknowledging they’ve come close to closing their businesses in the last six months, it’s no surprise that half (50%) of entrepreneurs are struggling to access financial support.
When it comes to business taxes, 65% of respondents believe they’re too high. Taxes were cited as the largest barrier to business growth (14%), followed closely by ‘input costs’ (13%), ‘access to finance’ (11%), ‘hiring difficulties’ (9%), ‘government bureaucracy’ (8%), ‘premises costs’ (7%), and ‘regulations’ (7%).
Despite these challenges, founders remain optimistic. The majority (60%) expect revenue growth, 57% predict rising consumer demand, and 45% anticipate hiring more staff. Nearly half (49%) are actively pursuing growth rather than maintaining stability, with many founders expecting key business drivers to improve over the next year.
Warren Mead, CEO of Sumer, commented:
“Our findings reveal some stark realities, particularly regarding the broader impact of even one small business closing in a community. These businesses are deeply rooted in their local areas, providing jobs, fostering community pride, and promoting social mobility. The fact that so many business owners are considering closing is alarming, though not surprising given the economic, political, and social uncertainties they’ve faced. This report should serve as a wake-up call for all of us—from grassroots to policymakers—to support smaller businesses more effectively.”
Regional disparities and pride
Encouragingly, regional pride shines through, with 89% of business owners believing a company can reach its full potential without being based in London. However, six in ten entrepreneurs feel economic inequality between UK regions is a major issue, pointing to underinvestment, skills shortages, and stagnation outside Greater London. There’s a strong call for the government to address these disparities.
Policy recommendations for change
The report emphasizes the need for government action to support UK SMEs and entrepreneurs more effectively. Key policy recommendations include:
- Keeping business taxes competitive by avoiding further increases to Corporation Tax
- Ensuring Capital Gains Tax reform doesn’t discourage entrepreneurial activity
- Reforming Business Rates to incentivize more productive land use
- Investing in infrastructure by simplifying the planning process and exploring alternative financing for construction
- Increasing the supply of business premises by liberalizing development regulations
- Expanding mayoral devolution with ‘London-style’ powers for metro mayors
- Exploring fiscal powers that could be devolved from Whitehall
Eamonn Ives, Research Director at The Entrepreneurs Network, concluded:
“If the new government is serious about fostering growth nationwide, it must prioritize the private sector’s role in creating jobs and opportunities. While entrepreneurs typically don’t rely on government support, there are steps the government can take to make business easier—keeping taxes competitive, strengthening infrastructure, and ensuring Britain remains open for business. Past efforts to rebalance economic growth have had mixed results, but by focusing on effective solutions, there’s no reason why businesses across all regions can’t unite in achieving growth and success.”
