The Barclays Entrepreneurs Index examines the entrepreneurial landscape in the UK by looking at the levels of activity occurring at different stages of the entrepreneurial lifecycle.
The report analyses a number of datasets to provide a snapshot of entrepreneurship in the UK – from start-up, to growth, and the point of liquidity at which wealth is created. Featuring interviews with experts and entrepreneurs, the Index is a comprehensive view of activity levels across business sectors and regions.
The eighth edition of the Entrepreneurs Index brings together environmental measures, such as access to finance and talent, along with entrepreneurial outcomes, such as growth and exit activity, in order to assess the strength of the UK’s entrepreneurial environment.
The eighth volume of the Entrepreneurs Index found that:
- Britain enjoyed a five-year high in opportunities for entrepreneurs leading up to the EU Referendum. However a lack of new scale up businesses, and current market uncertainty risk the UK under-performing and could now harm growth.
- Overall, Barclays’ Index of UK entrepreneurial performance is at an all-time high – up 10 percentage points since 2011 and showing strong progress and recovery after a decline in 2014.
- The ‘Total Early-stage Entrepreneurial Activity’ (TEA) – a measure of the number of people in the UK adult working-age population who are a nascent entrepreneur or owner-manager of a new business – fell by almost 4 percentage points up to the end of 2015, indicating that the UK is producing fewer businesses with ambitions to scale up. The Entrepreneurs Index also recorded a 4 percentage point rise in the number of active companies from December 2015 to June 2016 (345,000 new incorporations).
- There has been a healthy increase in the number of business exits. There was a 19% rise in the number of M&As of companies less than five years old, and a record high number of deals from December 2015 to June 2016, up 33%.
- The picture across the country for high growth companies is varied: every region in England experienced growth, with the West Midlands (+2.7%) and Yorkshire and the Humber (+1.5%) producing the most scale-ups, however Scotland (-2.9%) and Wales (-2.2%) fell.
- The construction sector created the most high-growth companies (+4.6%), followed by business services (+1.3%), agriculture (+1%), retail (+1%) and customer services (+1%) which were all above the UK average.