Virgin StartUp launches first Founder Barometer national business report

Britain’s entrepreneurial spirit endures according to new research, which today revealed two thirds (66 per cent) of small business founders are confident their businesses will be in a stronger financial position in six months’ time – but to get there, the government needs to step up.

Nearly a quarter (24 per cent) of the more than 450 new business founders polled said government policy hasn’t created an environment for their businesses to thrive.

The bi-annual Founder Barometer by Virgin StartUp also revealed a strong sense of inequality, with fewer than one in five (18 per cent) male founders saying that government policy hasn’t created an environment where their business can thrive - with more than a third (34 per cent) of female entrepreneurs feeling the same.

The inequality also spreads beyond genders, with a shocking 49 per cent of founders from the North feeling the political landscape and policy changes hasn’t created a positive environment, compared with just 21 per cent in the South.

27 per cent of founders also called out the need for greater support for underrepresented founders – female, Black, Asian and minority ethnic, and disabled founders, as well as better access to Start Up Loans (27 per cent) and greater access to mentorship programmes and schemes (24 per cent).

Yet optimism is high, with the majority (96 per cent) of new business founders saying they are planning to hire at least one full-time member of staff, with more than half (51 per cent) planning to hire at least four members of staff in the next year.

Andy Fishburn, Managing Director, Virgin StartUp, commented: “It’s important to hear directly from small business owners and start-ups which is why we decided to launch our bi-annual Founder Barometer survey. Despite a testing year, it’s encouraging to hear that many business founders are invigorated and are heading into the new year with a positive outlook.”

Being mindful of the environment and building a greener business was also a key priority for many. More than half (58 per cent) believe their customers care about sustainability, leading to an overwhelming number of founders (92 per cent) exploring ways to make their operations more sustainable in the next 12 months.

UK founders continue to list the cost-of-living crisis (29 per cent) and the risk of another recession (22 per cent) amongst the biggest challenges facing their businesses.

Andy added, “The business community is no stranger to dusting itself off and tackling hurdles head on, but now more than ever, with several challenging economic issues surrounding us, we need to be honest with ourselves and look at how and where organisations and our peers can support one another through what are undoubtedly unsure times”.

The Founder Barometer also revealed how a lack of economic stability is impacting the stress levels of founders. When asked about the state of their mental health, Britain’s founders rated this just 5/10 on average, demonstrating more needs to be done to support Britain’s hard-working entrepreneurs.

Andy Fishburn continues, “By launching our Founder Barometer we will now be able to provide a benchmark with which we test and look to improve how we do business, not just in the present but the future too. We’re committed to standing shoulder to shoulder with founders, in both the good times and the bad. Put simply, we want to be a business for good, now and always. “

By Mark Adair – Correspondent, Bdaily

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