A recent report highlights the challenges the UK faces in supporting and retaining high-value entrepreneurs and the innovative firms they aim to grow.
Statement from the London-based company Entrepreneur Network It states that up to 21% of UK entrepreneurs plan to leave the UK due to the Labor government’s failure to understand the dynamics of an innovation-driven economy.
Jurisdictions such as Dubai, the US and Singapore appear to be more attractive. Each of these locations has supported policies that encourage capital formation and support business, including lower taxes.
entrepreneurs Questionnaire states:
“..Founders almost universally agree that the current government does not understand the needs of entrepreneurs.”
And;
“Negative views of current levels of taxation and regulation in the UK are widespread among founders.”
Concerns about the difficulty of raising growth capital and the inability to recruit talent to support a new firm are common.
While starting a startup is easy, scaling the business is a different and more challenging matter.
Only 22% believe the UK is doing a good job of encouraging job creation.
On a positive note, tax exemptions such as SEIS, EIS and VCT are welcomed but the government needs to do more.
Leo LabeisCEO and founder REGnosyssays the bleak report reflects a broader issue of founders’ lack of confidence as policy uncertainty affects sentiment.
“The latest sector data continues to position London as one of Europe’s leading start-up ecosystems, underpinned by its depth of capital, talent and financial infrastructure, particularly in high-growth sectors such as fintech and Regtech. Maintaining this position will depend on greater clarity and consistency in policy, as well as stronger support for founders seeking growth funding and expansion in the UK.”
He believes the UK can maintain its competitive edge if the right policy is put in place
Meanwhile, the poll shows support for the Conservative Party rising as faith in the Labor Party declines.
Philip SalterFounder of Entrepreneurs Network, quotation inside screened He explains that the current environment makes it difficult to invest, hire and innovate. This has long-term consequences for the UK economy.
“Politicians across all political parties need to redouble their efforts to rebuild trust by focusing on the practical hurdles entrepreneurs face every day,” Salter said.
An innovation-based economy should be the policy goal of all politicians. Risk takers and entrepreneurs foster economic growth and wealth for everyone. Myopic policies that undermine job creation, including high taxes and excessive regulations that act as a hidden tax on capital formation, harm the entire population of any country.
