By Sabine Leveiller, VP of Marketing for Europe at VistaPrint
Starting a business is a significant challenge, but scaling one is an even greater hurdle. Many entrepreneurs quickly realise that launching a company is just the beginning—the real test lies in growing it sustainably and making the leap from startup to scale-up.
Having worked in business and marketing for years, I’ve witnessed the journeys of small business owners (SBOs) across the UK. While some have thrived and expanded internationally, others have struggled, particularly amid challenges such as the cost-of-living crisis. One thing remains clear: small businesses need greater support to achieve long-term growth. The House of Lords Communications and Digital Committee recently warned that without intervention, the UK risks becoming an ‘incubator economy,’ where businesses are launched but fail to scale. This isn’t just a tech sector issue—it spans industries. Providing SBOs with the necessary financial support and resources is critical to unlocking broader economic growth in the UK.
Understanding the scale-up challenge
In today’s economic climate, SBOs face significant barriers to growth. For many, survival is the primary concern, making expansion seem like a distant goal.
VistaPrint’s recent research highlights that financial constraints are the biggest obstacles to scaling up. Rising material costs (39%), limited access to funding (32%), and high marketing expenses (26%) are some of the key challenges preventing business growth. Compared to other nations, UK businesses also struggle with restricted access to capital, a shortage of highly skilled tech talent, and a conservative investment culture that hesitates to support ambitious expansion plans.
How the small business ecosystem can support growth
Despite these challenges, entrepreneurial ambition remains strong. Research shows that 41% of Brits are interested in starting their own business, yet 26% are holding off until conditions improve.
So, how do we turn these ambitions into reality? The wider small business ecosystem has a vital role to play in overcoming the barriers to scale-up success.
One of the biggest hurdles is funding. While early-stage financing—often from family and friends—is available, small businesses need better access to grants and investment opportunities to scale. Awareness is just as important as availability—SBOs must be equipped with the knowledge to identify and secure financial support effectively. Organisations such as Enterprise Nation, are crucial to helping businesses grow and our recent Realising the Remarkable grant programme with them provided £60,000 worth of grants to small businesses looking to make that next step in their journeys.
Beyond funding, mentorship and networking opportunities are invaluable. Entrepreneurs who have access to experienced mentors and professional networks gain crucial insights, guidance, and industry connections that help them navigate challenges and drive sustainable growth. While hundreds of business support groups exist, many SBOs don’t know where to find them—bridging this knowledge gap is essential.
The resilience of small business owners
Despite economic uncertainty, SBOs continue to show remarkable resilience. They have had to be agile, adapt quickly to changing conditions, and make tough decisions to not just grow, but to survive. This ability to pivot and persevere is key to long-term success.
Interestingly, younger generations seem particularly undeterred by economic challenges. Our research found that 20% of 18-24-year-olds and 21% of 25-34-year-olds believe 2024 offered the best conditions for business growth in the past five years. As geopolitical and economic volatility persists, this optimism and determination will be vital for sustained entrepreneurial success.
Moving towards a scale-up economy
What’s next for UK small businesses? If we can close the gap between startup and scale-up, the potential for economic growth is significant. While the resilience and optimism of SBOs are encouraging, meaningful change requires practical support. To ensure long-term success, we must nurture entrepreneurial ambition and provide businesses with the funding, resources, and mentorship they need to grow. Their success is not just beneficial for individual entrepreneurs—it’s essential for the prosperity of the entire UK economy.