Why UK Entrepreneurs Shouldn't Settle for Mediocrity
The Global Entrepreneurship Monitor Global Report is always an exciting read, providing rich data and analysis on which countries are doing best at fostering dynamic, enterprising, and innovative economies. However, this year's report highlighted some curious findings that are cause for concern, particularly for the UK.
The report showed that countries with high levels of human development have lower levels of early-stage entrepreneurial activity. This suggests that highly skilled individuals are in demand and are more likely to seek employment rather than starting their own businesses. While this may seem like a good situation, it may not represent the dynamic, innovative, and entrepreneurial economy to which the UK aspires.
If the UK wants to break out of its stagnant economic cycle, it needs to encourage highly skilled and experienced individuals to develop and follow their entrepreneurial dreams by starting high-growth and innovative businesses. Research shows that approximately one third of new economic growth comes from high-growth small businesses. Encouraging more of these highly talented individuals to take the entrepreneurial plunge may help unlock the full potential of the UK's people and economy.
The report also revealed that the gap between those who perceive they can and those who cannot afford to take entrepreneurial risks is widening. Small businesses and entrepreneurs are critical to social mobility, enabling people to develop the high value skills and experience that they would otherwise be closed out of. It's concerning that entrepreneurship is becoming more accessible to the ‘few’ and less accessible to ‘many’ - a dynamic that risks hampering any notion of "levelling up."
Moreover, the UK's position on the National Entrepreneurial Context Index places it at a mediocre position of 25 out of 51 countries. The UK is below average on almost every measure when compared to other developed nations, which is far from inspiring.
To achieve the rhetoric of successive governments to 'make the UK the best place to start and grow a business', a coherent enterprise policy is needed. The absence of such a policy in the UK is likely to be one of the reasons why the UK's entrepreneurial position is sliding.
In conclusion, it's time for the UK to move from mid-table to top table, from mediocre to high performer. The UK needs to put the oomph and vava-voom back into entrepreneurship. The newly established Department of Business and Trade must produce an Enterprise Strategy that applies entrepreneurial spirit, creativity, innovation, and takes a bit of risk. Otherwise, the UK will continue to slide further down the global entrepreneurship league table.
At this crucial moment, UK entrepreneurs must not settle for mediocrity. Instead, they should aspire to create a dynamic enterprise-led economy. If you’re ready to break the mould and create an dynamic enterprise led economy then we would love to help - check out our services and get in touch!
You can view the GEM 2022 Global Report here.
