U.K. Startup Guide: Navigating the Entrepreneurial Ecosystem

This report provides a comprehensive guide to the startup scene in the United Kingdom, highlighting the increasing number of new businesses and the government's support initiatives. It identifies key aspects of the UK's economy, society, and startup world, focusing on the vibrant startup environment, particularly in London's Shoreditch Borough. The report details the industries leading in startups, such as technology, food, and retail, and emphasizes the support networks and opportunities available, including government programs like Start-Up Britain, venture funding, and support programs like Tech London. A successful UK startup, The Ambrette, is presented as an example. The report concludes that the UK offers numerous opportunities for startup growth due to its large population, advanced economy, and investments in technology, recommending entrepreneurs to focus on key startup hotspots and leading industries like the food sector.

Start UP Guide for the United Kingdom
(Author’s name)
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Introduction
The rapid rise in the world’s population over the past couple of years has resulted in a
drastic increase in the rate of unemployment across the globe (Cressy 1996). To tackle this
challenge most governments have implemented policies that promote entrepreneurship programs.
This phenomenon is most evident in the United Kingdom ( U.K) which has experienced an
increase in the number of new businesses founded by young entrepreneurs. The country is going
through a start up revolution with statistical reports indicating that over 660,000 companies
where established in the year 2016 alone (Financial Times 2018). The drastic increase in the
number of startups is largely attributed to government sponsored programs that were established
after the 2010 financial crisis which led to a massive job losses. One of the most successful
government supported initiative is Start-Up Britain which was launched in the year 2011
(RocketSpace 2018). In recognition of the fact that a significant percentage of the youth
population might be willing to take advantage of the government initiatives and establish
startups, this paper ventures to provide a detailed guide of the U.K start up scene to aid new
entrepreneurs in their business journey. To achieve this, the paper will cover key aspects of the
United Kingdom’s economy, society and start-up world.
The Start-up Scene
As started in the introductory section of the paper, the U.K has one of the most vibrant
startup environments with the number of new companies increasing every year. In the U.K
startups are defined as young/new companies that are relatively small or medium sized and that
is just starting to develop (GOV.UK 2018). According to statistics by the Center for
Entrepreneurs, 660,000 new companies where established in the U.K in 2016. This was a
significant increase from the 608,000 new companies that were established in the year 2015
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(Financial Times 2018). From the figures it is evident that the rate at which new companies in
the country is significantly high. It is also evident from the figures that a significant percentage
of U.K citizens are embracing the idea of founding their own companies.
(Lancaster 2018)
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It is estimated that approximately 68% of all new startups are based in London
(Featherstone 2018). Within the capital the Shoreditch Borough is regarded as the heart of
entrepreneurship in the U.K. Dubbed the Silicon Roundabout, the Borough has over 30 startup
accelerators, 2000 startups and 48,000 individuals employed within the areas digital economy
alone.
(Lancaster 2018)
Other than financial muscle, another factor that can be credited for the high number of
startups being founded in London is the regions high population which provides a large clientele
base for the different goods and services offered by the various startups (European startups,
entrepreneurship and innovation news: Whiteboard 2018). The large population also provides for
insatiable needs thereby creating opportunities for the founding of more startups. The startups
meet the needs of the market largely through the innovation ( the act of developing new solutions
that meet the needs of customers) of new solutions. The industries that are leading in number of
startups across the U.K are the technology, food and retail industries respectively.
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(Lancaster 2018)
From the chart of common start up industries, it is evident that the food sector is the second
most popular in the country. The large number of startups operating within the food industry are
as a result of the growing popularity in the culture of eating out within the U.K society. A
significant number of restaurants that are being established within the country are largely
focused on healthy eating practices. It is estimated that approximately 65% of all restaurant
startups in the country are engaged in the promotion of healthy living practices through the
consumption of healthy meal. The success of the food industry is also largely driven by the
increase in productivity of agricultural products across the U.K. This has reduced the cost of
product acquisition for U.K restaurants thereby increasing profit margins. One of the most
challenging factors for organizational success in the U.K
Support Network and Opportunities
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One of the key factors that has contributed to the rapid rise in number of startups across
the U.K is support by the government and other organizations. As indicated one of the most
effective government instituted programs is StartUp Britain. The program is a business led
campaign that sponsors the operations of CfE (GOV.UK 2018). StartUp Britain also established
a Loan scheme for startups in the year 2012 and the scheme has provided loans exceeding £300m
to over 46,000 startups (GOV.UK 2018).
The loan scheme provides funding of up £25,000 at an interest rate of 6% annually for
new businesses. The government has also introduced and increased the number of tax breaks for
startups and investors operating in the U.K.. Other than government provided funding, the
country also has other sources of funding for startups namely venture funding and angel
investors.
It is estimated that the U.K has over 1000 venture funding and angel investment firms.
Statistical reports indicate that in the year 2015, Venture Capitalists firms in the U.K raised over
£2.5 billion for startups. Some of the major venture capitalists firms in the country are Draper
Esprit, Accel Partners, Walking Ventures and Delta Partners (Williams 2018). The firms ususllay
invest in unique innovative ideas and offer funding that range between £500,000 to £2 000,000
(Williams 2018). From the data it is evident that the U.K government and other private
organizations have established mechanisms to ensure that finance is not a major inhibitor for
startup development in the country. Entrepreneurs have multiple avenues through which they can
easily access the funding that is needed to aid the development of their companies. With regards
to support, there exist a number of platforms that new entrepreneurs can exploit for startup
knowledge.
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One of the most effective support program is Tech London. The program acts as a
resource for business founders providing them with information on capital sourcing , workspace
acquisition to employee recruitment (Tech London 2018). The program is a collaboration
between the Gust ( an Investment Portal) IBM and the Mayor of London (Tech London 2018).
Another form of support offered to startups in the country is the Tech Nation and Tier 2 Visas
which are provided to skilled workers looking to work in the U.K. This allows startups to recruit
highly skilled workers from foreign countries easily (Bozorgzadeh 2018).
Example
A key example of a highly successful U.K startup The Ambrette. Founded in the year
201 by Chef Dev Biswal, the restaurant provides seasonal meals that feature a mix of exotic
and local healthy meals. The restaurants provides its large clientele base with a unique and
fresh approach to fine dining of exotic meals. Located in the south of England, the restaurant
caters mostly to individuals between the age brackets of 24 to 38 who are in highly competitive
and time consuming careers. The restaurant owner has capitalized on the growing social trend
of fine dining by introducing healthy meals that are foreign to traditional U.K cuisine. The
restaurant also promotes the utilization of sustainable, fresh, local, ingredients in the
preparation of its meals. The ingredients are fused together with aromatic spices and herbs
with an aesthetic presentation style to appeal to the clientele base. To ensure customer loyalty
the organization restaurants implements an open door policy where individuals from the
community are able to share their ideas with the restaurant allowing for innovative practices.
Conclusion
From the discussion provided, it is evident that the U.K provides a number of
opportunities for startups growth. The regions large population base, highly advanced economy
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and significant investments in technology make it prime for the establishment of startups. The
numerous support systems offered by the government and the large number of startups emerging
across the country also makes it evident that the society has significantly embarrassed and
adopted the startup culture. From the report it is also evident that technology is at the fore front
of the U.K’s startup culture. This is seen in the large number of technology based startup firms
that are being founded in the country. The government has also implemented highly specialized
support programs for technology based firms. Based on this it is highly advisable that anyone
looking to start a company in the U.K do so in one of the 16 key startup hot spots in the country
and most especially London. It is also advisable that one invests in one of the three leading
industries and most especially the food industry which is highly supported by the government
and other private organizations.
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