With improved accessibility to modern technology, flexible working models, and workforce, it’s never been “easier” to start a business. And yet, the failure rate tells a different story. Nearly 20% of new UK businesses collapse within their first year, and 60% fail within three.

It's not purely because of challenging market conditions, poor financial planning, or cut throat competition.

And no, it’s not Rachel Reeves’ fault either.

A gradual erosion of soft skills and fundamental communication capabilities is affecting the next generation of business leaders. Too many startups are collapsing not because their ideas lack merit, but because their founders can’t effectively lead, collaborate, or communicate.

 A crisis of communication

In the race to upskill in Science, Technology, Engineering, Mathematics (STEM), core interpersonal skills – communication, emotional intelligence, and resilience has lapsed. Despite soft skills being the essential skills that underpin effective leadership, collaboration, and sustainable growth.

Nim Pancholi is the founder of All About Soft Skills, where she focuses on making communication relevant in today’s world through interactive summits and leadership masterclasses. As a keynote speaker and a passionate advocate for learning the science of behaviour, she blends her background in sciences to bring a unique perspective to professional development when it comes to human behaviour. She explains: “Effective communication is the cornerstone of great leadership. Too many management teams now lack  the fundamental tools to communicate with clarity, inspire teams, manage conflicts, and influence others more effectively – all critical for leading successfully in any organisation.

“'I see it every time I go into a business and deliver a workshop – the soft skills gap is showing up in every corner of the start-up ecosystem: fractured teams, culture breakdowns, lost deals, and businesses closing before they ever truly get started. Too many founders can build a product but can’t pitch it. They can code an app – but not manage a team. They secure funding but fail to align people behind a shared vision.

“It’s not a lack of intellect – it’s a lack of people skills.”

The silent skills gap

The myth of the lone genius founder coding into the night, emerging with a billion-pound business is exactly that: a myth. Successful startups are built on people, not just products. People thrive when led by those who can clearly articulate vision, values, and channel expectations.

Yet, we’re seeing a generation raised on text messages and social media stories enter the business world with limited exposure to in-person conflict resolution, persuasive dialogue, or even professional email etiquette. The “always-on” culture of digital life hasn’t prepared them for the interpersonal nuance of running a business.

All About Soft Skills specialises in bringing the foundational skills back into focus. Through interactive leadership summits, masterclasses, and soon-to-launch on-demand platform, they are helping the next generation of leaders connect, communicate, and thrive.

They recognise that to reverse this worrying trend, we need a collective shift across the British entrepreneurial ecosystem:

1. Embed soft skills into business training

Communication, collaboration, and leadership training shouldn’t be optional extra accelerator programmes, online business courses, or MBA programmes. They should be priority from day one and treated with the same gravitas as financial planning or product development.

2. Mentorship must go beyond metrics

Experienced business leaders should focus their mentorship not just on scaling strategies or funding rounds, but on how to lead with empathy, build culture, manage conflict, and inspire trust.

3. Build solid foundations

From schools through university, we must value authentic speech, confidence, presentation skills, teamwork, and emotional literacy not just academic excellence. Let’s teach our young people to present their ideas, argue their points, and resolve disagreements in classrooms before boardrooms.

4. People above profit

We need a shift in culture – let's celebrate leaders who achieve success whilst prioritising how they build inclusive, resilient, and communicative companies.

The Effective Communication Summit with Baroness Karren Brady

Nim created All About Soft Skills designed to empower leadership and their teams with key skills like communication, influencing, and problem-solving, essential for thriving in today’s world.

Through expertly crafted sessions using science of behaviour, All About Soft Skills provides accessible, impactful resources for continuous personal and professional growth.

Tackling the skills gap head on The Effective Communication Summit will take place for the first time on 19 September 2025 at The Brewery, London.

With keynote speakers from the world of business and a fireside chat with iconic British entrepreneur – Baroness Karren Brady – delegates will learn from Britain's best and brightest and network with like minded guest speakers, business professionals, leaders, founders and entrepreneurs.

Backed by exclusive headline sponsor, Echelon Group International and delivered in partnership with Startups Magazine, a digital publication aimed to educate, stimulate and inspire the corporate world, entrepreneurs and small business owners, tickets are selling fast for the world class event.

Conclusion: build people, not just products

If we want to reduce startup failure rates, we must do more than teach young people how to build apps and balance spreadsheets. We must equip them with the human skills to lead, to listen, and to connect.

If we don’t act now, the UK risks losing a generation of entrepreneurial potential – not for lack of talent – but for lack of teaching them how to talk.

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