Most UK startup firms want to keep their business in the country but are warning about regulatory burdens, political uncertainty, and difficulties accessing funding, according to a new study by Virgin Media O2.
The research, which surveyed 500 start-up companies, found that nearly nine in ten respondents would like to keep their business base in the UK. However, many said that barriers such as regulatory hurdles and funding access were holding them back.
Almost half of those surveyed expressed optimism about the UK's long-term economic prospects, citing high-quality research institutions, a strong international business environment, and robust legal and regulatory frameworks as key strengths.
Lutz Schuler, chief executive of Virgin Media O2, said: “Bold and innovative businesses are created here in Britain because it cultivates home-grown talent with the ambition to match. But too many of the fastest-growing companies can’t see a route to scale in the UK and are now looking to prosper abroad.”
Schuler called for “agile regulation, patient capital, a strong talent pipeline, and long-term policy stability” to unlock growth. He warned that with an AI-powered economic revolution underway, Britain faces a choice to lead or follow, and must fix the frictions founders face every day to maintain its place on the world economic stage.
