The UK risks losing its young founders to global rivals

Wednesday 29 October 2025 12:01
| Updated:

Tuesday 28 October 2025 18:41

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The UK is at risk of an exodus of entrepreneurial talent as young founders find themselves lured by global competitors.

According to a new report from the Young Entrepreneurs Forum, the UK is losing its edge as a profitable destination for young people to launch their startups, as policymakers fail to address growth-sapping challenges.

This includes concerns about the UK investment landscape, government initiatives and the immigration framework.

While the think tank argues that the fundamentals of the UK’s startup ecosystem are strong, existing issues need to be addressed to stop young founders being tempted by competitors overseas.

Many young founders are choosing other countries, including the US and Canada, as well as other developing countries such as Denmark, which is known for its efficient startup process and low costs.

Sean Kohli, chairman of the Young Entrepreneurs Forum, which is an offshoot of the Entrepreneurs Network think tank, said: “The UK is not short of talent or ambition, but much of that potential remains stifled.

“Culturally, we make entrepreneurship seem like an impossible dream for many passionate innovators.

“The next generation of founders are ready to lead, now the UK must be ready to support them.”

Modernize policies

Entrepreneur Network is calling on the government to modernize its policies towards startups in the UK to keep talent and capital flowing into the country’s startup scene.

The recommendations include increasing the generosity of the tax relief scheme for start-ups and scrapping stamp duty on shares, a call that has gained momentum in recent months following speculation that the Treasury is considering doing just that.

The think tank also recommends changing immigration regulations to create accessible and competitively priced pathways for global talent as well as working with the Regulatory Innovation Office to remove barriers that hinder innovation in new sectors such as biotechnology.

Eamonn Ives, research director at The Entrepreneurs Network, said: “The future strength of the UK economy depends on its ability to enable young founders to thrive.

“Promising entrepreneurs at the start of their journey are ready to take on the world and the government must do all it can to ensure they thrive here in the UK and not elsewhere.

“The UK has faced many difficulties when it comes to fostering entrepreneurship, but with other countries quickly catching up, we cannot afford to be complacent.”