The 2nd Annual Virgin StartUp Founder Barometer Report

Virgin StartUp has released its second annual Founder Barometer report, speaking to over 500 founders to take the pulse of startup Britain in2024.

This latest Founder Barometer report marks the launch of Virgin StartUp’s new Community where founders can connect with each other and access 1-1 mentoring, online courses and tailored advice from experienced entrepreneurs in the industry.

Key stats from the report:

• UK business founders are calling on the government for more support as 50% of founders are concerned their business might not survive the next 12 months - by comparison only 11% felt the same way in November 2023.

• The research by Virgin StartUp also shows that fewer business founders are confident their business will be in a stronger financial position in six months’ time, a decrease from 66% in November 2023 to 45% today.

Following months of political upheaval, British business founders are feeling the pressure. New research today shows a worrying half (50%) of small business owners are concerned their business might not survive the next 12 months. By comparison, only 11% of founders felt the same way in November 2023, a stark reminder for the new government that Britain’s founders need better support.

The figures released today by Virgin StartUp, as part of its ‘Founder Barometer’ report, show that fewer business founders are confident their business will be in a stronger financial position in six months’ time, decreasing from 66% in November 2023 to 45% today. The report reveals that business owners are calling on the new government to better support SMEs by scrapping business rates (33%), increasing support for local regions outside of London (32%), cutting corporation tax (26%) and raising the VAT threshold (24%).

This comes as the cost-of-living crisis is a bigger concern than ever, with more than half (52%) of founders admitting this is their biggest concern, a huge increase of 23% in comparison to last autumn’s total. Nearly a third (30%) of respondents have acknowledged their mental health has worsened in the past six months. These mounting pressures mean support is needed more than ever for entrepreneurs in the UK.

Andy Fishburn, Managing Director at Virgin StartUp commented: “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 £4.5 trillion 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.”

It’s not all doom and gloom. Nearly three-quarters (70%) of business founders responding to the study said they are looking to expand in the next six months, with more than a third (37%) planning to increase their products or services and 22% planning to raise new funds or investment.

The research also indicates that owning your own business need no longer be a lonely endeavour, with founders increasingly building a network of support from other founders in-person and online. One in five (20%) founders now get their most valuable advice from online communities or social media and are using these communities for moral support (20%), expert knowledge (17%) and creative advice (13%).

Support from family (53%) and friends (46%) are also the top two factors helping business owners’ mental health.

UK business founders are calling on the government for more support as 50% of founders are concerned their business might not survive the next 12 months - by comparison only 11% felt the same way in November 2023.

The research by not-for-profit, Virgin StartUp, also shows that fewer business founders are confident their business will be in a stronger financial position in six months’ time, a decrease from 66% in November 2023 to 45% today.

The figures are part of Virgin StartUp’s second annual Founder Barometer report. To access the report please contact Kate Cashmore at kate.cashmore@virgin.com.