British entrepreneurs are launching businesses at a record pace, yet a stark new report reveals a deep-seated feeling of being undervalued, underfunded, and culturally overlooked. The 2025 UK StartUp Report found that only 29 per cent of founders believe entrepreneurship is seen as a desirable career in the UK.
Perhaps more concerning for the government, just 27 per cent feel successful founders are celebrated, and only around a third think Westminster recognises their contribution to the economy. This sentiment of neglect persisted even as the Treasury unveiled a series of measures in its second Autumn Budget designed to support high-growth companies.
Budget Measures Target Scale-Up 'Valley of Death'
The Budget, which dispelled earlier rumours of a punitive 'exit tax', introduced targeted support for firms at the crucial Series B stage. Key announcements included boosted Enterprise Management Incentives (EMI) share option limits to help retain talent, and a three-year stamp duty exemption for London listings worth up to £50m a year.
For Alexandra Depledge, the Treasury's first-ever entrepreneurship adviser, these steps mark the beginning of a mission to reverse a years-long decline in support. "This has been a slow decline, right? That didn't start with this current government," Depledge told City AM. "It's been around since the mess of Brexit really."
Her goal was twofold: to help attract and retain top talent through the EMI scheme, and to increase the capital available to scaling founders. "When people are looking for that check of like 10 or 20 million, that they've got multiple options," she explained. "This is the lever we need to pull."
The Cultural Gap: Scale-Ups Are Not SMEs
Beyond capital, the report highlights a significant cultural and perceptual gap. Depledge argues there is a critical failure to distinguish between small and medium-sized enterprises (SMEs) and high-growth scale-ups.
"It's a bit like saying you've got a Ford Focus, and then you've got this McLaren, and you're going to use the same engine oil and the same wheels. They're just not the same at all," she said. This conflation in public discourse contributes to founders feeling misunderstood and undervalued.
Depledge stressed that access to capital markets and government procurement channels is vital for keeping innovative companies on British soil. "If British companies are being used by British institutions – that can only be a good thing, and it allows us to grow bigger companies," she added.
Political Will and the Power of Narrative
Depledge praised the Treasury's leadership, describing Chancellor Rachel Reeves's ambition for the scale-up sector as an "11 out of 10". She noted the Chancellor's impassioned support and highlighted a £2bn commitment to the sector.
However, for Depledge, changing the narrative is as important as changing policy. She warned against a culture of talking the UK down, which can lead to a "managed decline." "I think in Rachel Reeves, we have somebody who is determined to make these high growth companies a success," she stated.
While the Budget's practical steps – including EMI reform, stamp duty relief, and R&D funding – have been cautiously welcomed by founders, the underlying cultural challenge remains. The 2025 report makes it clear that for UK entrepreneurship to truly thrive, policy must be matched by a shift in perception that properly values the ambition and risk of its founders.
