A new report suggests that most early-stage firms want to build and grow their businesses in the UK, yet many feel held back by the conditions they face. Research from Virgin Media O2, based on a survey of 500 start-ups, indicates that the country stands at “a pivotal crossroads” when it comes to removing barriers to growth.

Almost 90% of respondents stated that they would prefer to maintain their business base in the UK. However, many highlighted concerns such as heavy regulatory demands, political uncertainty, and limited access to funding. These issues, they said, are making it harder to scale their operations and compete globally.

Despite these pressures, nearly half of the founders surveyed remained optimistic about the UK’s long-term economic outlook. They pointed to the strength of the country’s research institutions, its established international business environment, and its trusted legal and regulatory systems as reasons for confidence.

Lutz Schüler, Chief Executive of Virgin Media O2, said that Britain continues to foster “bold and innovative businesses” thanks to strong homegrown talent. But he warned that too many fast-growing firms struggle to see a clear path to scaling up within the UK and are beginning to look overseas for better opportunities.

Schüler argued that the UK needs agile regulation, reliable long-term investment, a steady talent pipeline, and greater policy consistency to support sustainable growth. As AI-driven change accelerates, he said, the UK must decide whether it intends to lead this shift or risk falling behind.

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