Looking at how entrepreneur numbers have changed among different segments of the UK population, the report found that:

• Early-stage entrepreneurial activity among 55 – 64 year-olds has nearly doubled in the UK, going from 3.2% in 2020 to 7.4% in 2021.
• The ratio of female-to-male entrepreneurship in England has risen to 73%, up from 69% in 2020.
• Entrepreneurial activity among the UK’s non-white population stood at 20.4% in 2021. Among the ethnic white population, this rate was 10.1%.
• 55.5% of potential entrepreneurs in Wales say fear of failure prevented them from starting a business.

The research, based on a sample of just over 10,000 individuals, also found that almost one in three working-age individuals are either engaged in entrepreneurial activity or intend to start a business within the next three years.

Mark Hart, Deputy Director of the UK’s Enterprise Research Centre and Professor of Small Business and Entrepreneurship at Aston Business School, says: “In 2020 we saw a collapse of early-stage entrepreneurial activity as many decided to delay their move into setting up their own business in the face of the most severe economic downturn in 300 years – but within 12 months it has bounced back.

“The GEM survey, undertaken in the middle of 2021, showed a sharp rise in the number of individuals in the early stages of setting up a new business compared to even the pre-pandemic high in 2019. It is now at the highest level since the annual survey began in 1999 and is an indicator of the entrepreneurial resilience of the UK.”

As economic headwinds gather, however, Andrew Harrison, our Managing Director of Business Banking, is keen to point out that the nation’s entrepreneurs need further support.

He adds: “The resilience of small businesses over recent years is both inspiring and important. As the economy faces significant turbulence in the year ahead, it is critical that the UK has a thriving ecosystem to support this boom in entrepreneurship, which is central to economic stability and growth.

“As the UK’s biggest bank for business, we are determined to play our part in helping the future business success stories start, scale and thrive.”