New research indicates that the vast majority of UK-based startup firms are keen to keep their operations in Britain, but significant challenges are threatening their growth and long-term future here.
Overwhelming Desire to Stay, But at a Cost
A comprehensive study from Virgin Media O2, released on Wednesday 19 November 2025, surveyed 500 start-up companies. It found that an impressive almost nine in 10 respondents expressed a desire to maintain their business base in the United Kingdom.
However, this loyalty is being tested. The same businesses issued stark warnings about the difficulties they face, with many citing regulatory burdens, political uncertainty, and difficulties accessing funding as the primary factors holding them back from scaling up.
A Nation at a Crossroads
The report describes the UK as being at a pivotal crossroads when it comes to removing these barriers to growth. Despite the challenges, there remains a foundation of optimism. Almost half of the entrepreneurs surveyed reported feeling positive about the UK's long-term economic prospects.
They identified several key British strengths that continue to make it an attractive place for business, including its high-quality research institutions, international business environment, and strong legal and regulatory frameworks.
Leadership Calls for Action to Unlock Potential
Lutz Schuler, the Chief Executive of Virgin Media O2, commented on the findings, stating that Britain is a natural home for bold and innovative businesses due to its home-grown talent. Yet, he issued a serious warning: 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 outlined a clear prescription for change, emphasising the need for agile regulation, patient capital, a strong talent pipeline, and long-term policy stability to unlock growth. He positioned this as a critical moment, especially with the AI-powered economic revolution underway, asking whether Britain will lead or follow.
This is a country that can maintain its place on the world economic stage and win, Schuler concluded, if it fixes the frictions founders face every day.
