Andy Fishburn, Managing Director at Virgin StartUp, speaks to Clayton M. Coke of Podcast Radio to discuss why 50% OF UK BUSINESS FOUNDERS FEAR THEY WILL NOT SURVIVE 12 MONTHS

Small and medium sized enterprises (SMEs) make up 99% of businesses in the UK, supporting 27 million jobs across the country and collectively account for £4.5 trillion in annual turnover.

Recognising their pivotal role in the UK economy, the former government made 2024 the “Year of the SME” to highlight their plight and tackle the key issues they face.

But now, new research has revealed that half (50%) of founders are concerned that their venture will not survive the next 12 months, versus only 11% having the same concerns last year.

That’s according to the new Founder Barometer report from Virgin StartUp, which has revealed that the cost-of-living crisis (52%) is the biggest challenge they face today. This explains why, from this new government, they would most like to see:

• Business rates scrapped (33%)
• Greater support for businesses and regions outside London (32%)
• A cut in corporation tax (26%)
• The facilitation of greater access to capital (23%).

When it comes to mentorship, more than one in 10 (13%) say the most valuable advice comes from fellow founders/peers, and 11% from online communities – with almost one in five (19%) having experienced a eureka moment after engaging with them.

Meanwhile, 16% say spending time with fellow founders has improved their mental health, while 17% have received expert knowledge and information from their communities.

Andy Fishburn, Managing Director at Virgin StartUp, Virgin’s not-for-profit home of entrepreneurship, which Richard Branson launched in 2013, discusses the need for continuous support as well as funding to founders, and what they can gain from better engaging with each other to celebrate the launch of the Virgin StartUp Community Platform.