The UK’s position in the global entrepreneurial stakes is encouraging, according to new research based on the Ashish J Thakkar Global Entrepreneurship Index.
The country comes fifth in the inaugural index, which was topped by Singapore. A closer look at the research shows that the UK owes its elevated position in part thanks to country’s ‘finance pillar’: to its ability to provide a supportive financial culture for entrepreneurs to flourish in. In particular, the UK scores extremely high in terms of its attractiveness to investors in venture capital and private equity, bettered only by the United States, due to its acknowledged history as a stable economy that is optimal for investors.
The UK’s policy environment was also held up as benefitting small businesses: the framework put in place by the UK Government to encourage entrepreneurs excels due to the lack of perceived risk stemming from its high credit rating and the economic freedoms afforded by its open approach to capitalism.
“An open and nurturing environment”
With all that said, the UK does have some structural issues that inhibit the development of a start up culture. This is due to a significantly low ‘attitudes’ score which specifically relates to the lack of interest and appetite of the average citizen to start their own business.
James Endersby, Managing Director of Opinium, the company that conducted the research, said: “The Index indicates that on the global stage, the United Kingdom is one of the most open and nurturing environments for entrepreneurs to build their own business. While fifth place is a significant and admirable position in the overall ranking, the lack of entrepreneurial spirit that it indicates in the average citizen is concerning. More must be done to encourage people to take hold of the opportunities available to them, particularly if we want to continue to nurture our economic position in a post-Brexit environment.”
The Top Ten:
2. New Zealand
5. United Kingdom