UK entrepreneurs urge ‘faster, clearer’ digital policy as EU appeal rises
UK entrepreneurs and SME leaders are staying loyal but looking abroad. New data from e-Residency shows 90% would still start their business in Britain, yet 57% say post-Brexit barriers make the EU more attractive for expansion.
The findings capture a nation of confident but restless founders. 77% remain optimistic about the UK’s competitiveness over the next three years, but many believe momentum is slipping elsewhere. 55% say digital-first company registration abroad gives other countries an advantage, and half believe visa and talent programmes overseas are more founder-friendly.
Europe tops the list of international destinations, with 74% naming it their preferred region for future expansion. For many, the appeal of this market lies not only in its growth potential but also in the practical advantages it offers for ease of doing business.
The trust economy takes centre stage
Digital trust is now the passport for global business – and it’s influencing where UK founders feel confident scaling. They’re gravitating toward markets that combine strong reputation with the reliable digital infrastructure that lets them show up for customers every time.
- 88% of UK founders say digital trust will decide which startups succeed globally, and 85% view reliable digital infrastructure as vital as physical infrastructure for business continuity. 84% add that digital trust rivals product quality or price in customer decisions
- That belief is grounded in lived experience. In the past year, 73% of founders faced at least one challenge linked to online risk or misinformation. More than a quarter (26%) say AI-generated fakes or profiles have already damaged trust in their sector
- To protect their reputation and compliance, businesses now spend an average of 16% of operational costs on digital trust and security
- For UK entrepreneurs, trust is a survival metric. 84% want governments to take a stronger role in digital resilience, and 78% warn companies ignoring trust risk being excluded from key markets
Liina Vahtras, Managing Director at e-Residency, underlined the urgency for more predictable systems: “Digital trust has become the passport for global business, and founders will cross borders in whichever direction offers certainty and speed. UK entrepreneurs are loyal – they want to build here – but they’re also realistic about where digital systems make their lives easier.
“e-Residency is proof of how powerful that can be. When a founder can create and run a company remotely, with trusted digital identity and seamless compliance, it frees them to focus on growth instead of bureaucracy.
“With 79% of UK entrepreneurs saying government-backed digital infrastructure will determine who scales internationally by 2030, the path ahead is clear: trust, predictability and digital-first processes are the foundation of global competitiveness.”
Skills and stress: the new growth barriers
Behind the confidence lies constraint. While UK founders remain ambitious and globally minded, the day-to-day reality of building a business at home is often being shaped by strain.
- 89% of UK founders say skills shortages at home have limited growth, with 29% reporting a critical impact over the past year
- The sharpest skills gaps are in AI/data science (cited by 79% of respondents) and cybersecurity (80%) – the skills the UK needs to stay competitive in its digital transition
- Founders are feeling the strain personally. 95% say running their business negatively affects their wellbeing, and 44% experience stress or burnout often
- 37% cite financial insecurity linked to business survival as a key challenge, while 34% struggle to balance family or personal life with founder responsibilities
- 18% say isolation and lack of mentorship are ongoing obstacles to growth
AI-first and borderless by 2030
Founders see the next five years reshaping what a “British business” looks like - and many believe the most successful ones will be defined less by postcode and more by platform.
- 75% say most startups will be AI-first by 2030, while 70% agree that without adopting AI technologies, they risk being outcompeted within five years
- 74% believe borderless companies – built to operate globally from day one – will become the norm, and the same proportion expect digital ecosystems (rather than physical hubs like London or Berlin) to dominate as the main startup hubs
- Government-backed digital infrastructure is seen as central to that shift: 79% say it will determine who scales internationally by 2030
- Already, 76% of entrepreneurs say AI is changing how they develop products and services, and 71% say it has unlocked new revenue streams or markets. Yet 70% admit fragmented or unclear regulation is slowing their ability to scale across borders
- When asked what would increase their confidence in a market’s capacity to lead, over half (51%) pointed to faster, clearer regulation for emerging technologies such as AI and digital identity – followed by greater investment in digital infrastructure and R&D (42%) and stronger cybersecurity and digital resilience standards (39%)
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