United Growth: How entrepreneurs can drive regional economic development

Sumer and The Entrepreneurs Network conducted a survey of 610 business owners from across the UK, with 50 from the South East. Although entrepreneurship is a driving force behind the UK economy, the findings reveal significant challenges. 

The survey showed that nearly half considered closing in the past six months due to economic, political, and social uncertainties. Regional economic disparities remain a pressing issue, with factors like high taxes, access to finance, and rising input costs identified as major obstacles to growth.

Key findings from the United Growth survey

South East

Businesses in the South East are in a good position nationally. More than 50% are focused on growing their business over the next 12 months, and feel optimistic about consumer demand, skills and infrastructure in the local area. However, they continue to have concerns around tax, regulation and rising costs.

Economic inequality

UK business owners overwhelmingly agree that regional inequality is a problem, with up to 92% in some areas acknowledging this issue.

Business closure concerns

Around 44% of surveyed business owners have come close to closing in the past six months. These numbers are particularly stark in Northern Ireland (73%) and the North East (68%). South East businesses have fared better, with less than a third (30%) agreeing.

Tax burden

Taxes were identified as the most significant barrier to growth, followed by input costs, access to finance, and difficulties hiring staff. This was universal across the UK and the South East.

Optimism despite challenges

Despite difficulties, many businesses are optimistic about growth. Over half of the entrepreneurs surveyed expect revenue to increase, and many are actively targeting expansion.

Policy recommendations from Sumer and The Entrepreneurs Network

  • Competitive business taxes: Keep corporation tax rates low to encourage growth and avoid raising Capital Gains Tax in a way that could discourage entrepreneurship.
  • Invest in infrastructure: Improve transport links by streamlining planning processes and finding innovative funding solutions, helping businesses across regions to thrive.
  • Increase supply of business premises: Reform Business Rates to incentivise more productive land use and create space for businesses to grow.
  • Mayoral devolution: Grant more powers to metro mayors, allowing them to have greater control over their regions and driving local economic growth.
  • Boost international trade: Restart negotiations on a free trade agreement with the US and offer Youth Mobility Schemes to the EU and US to make Britain more open for business.

The collaboration between The Entrepreneurs Network and Sumer demonstrates that entrepreneurship is not a solitary pursuit. Instead, it’s a journey supported by shared experiences, guidance, and collective effort. By tapping into this network, entrepreneurs can gain the support, knowledge, and connections they need to thrive in today’s competitive market.

For further guidance on how to grow your business during these challenging times, please do not hesitate to contact our team on 01903 234094.