PRESS RELEASE
Bootstrapped, AI-powered and customer obsessed: how to join the startup scene in 2025
13th January 2025
Four in 10 (43%) startup founders either needed no money or less than £10,000 to launch. 85% of founders were able to self-fund their venture.
Administrative and organisational skills are top of the hiring wish list (42%), followed by creative skills (20%) and marketing and sales expertise (13%).
Six in 10 startups currently use AI, and 79% of those who don’t, plan to start using it.
Challenger banks are the preferred choice for three in five (57%) startups.
Monday 13 January: A new report by the UK Startup Awards, sponsored by Starling Bank, has fired the starting pistol for those looking to launch or join a startup business in the new year.
The 'UK Startup Report 2024' is based on a survey of over 1,176 businesses under three years old participating in the UK Startup Awards. The annual survey provides a unique snapshot of the challenges and opportunities facing early-stage companies.
Would-be founders might not need as much money as they think, and those looking to work in a startup may already have the skills in demand. The report uncovered that four in 10 (43%) founders either needed no money or less than £10,000 to launch, and 85% of founders bootstrapped (self-funded) their venture. Six in 10 required less than £50,000, highlighting that many entrepreneurs can launch with modest resources
For those looking to support budding entrepreneurs, the skill set most in demand was administrative and organisational roles, with 42% hiring for this expertise; this is likely to be due to early-stage founders trying to offload operational tasks.
Professor Dylan Jones-Evans OBE, Founder of the UK Startup Awards, said: “In today's challenging economic climate, supporting the UK's record number of new businesses is critical. Our latest research provides vital insights into the startup journey, funding, management, and support needs of these innovative companies.
“This year's report reveals a fascinating paradox: while UK startups are remarkably resourceful, embracing AI and customer-centric, there's a clear blind spot when it comes to branding and marketing. This contrasts with the consensus that strong branding can differentiate businesses in saturated markets.
“These findings will be essential in guiding effective policy decisions and fostering an environment where UK startups can prosper and drive economic recovery.”
Adeel Hyder, MD of SME Banking at Starling Bank, said: “We're thrilled to see this entrepreneurial spirit thriving in the UK, with so many founders launching businesses with modest resources and a laser focus on their customers.
“It’s encouraging to see that the majority of startups are embracing technology like AI and digital banking solutions to power their growth. We’re proud to be the leading choice for innovators as they challenge conventions and shape the future of the UK economy.”
The report also found:
Funding required: At the other end of the funding spectrum, 7% needed over £500,000, likely in industries with higher entry costs such as technology or manufacturing. In terms of speed to market, seven in 10 founders launched their business within a year of having the idea.
Skills gap: The requirement for creative skills (20%) reflects the ongoing need for innovation, especially in sectors where differentiation is key to success. Marketing and sales skills (13%) were the third most sought-after, consistent with the need for new businesses to effectively market their products or services and build market presence.
Artificial Intelligence: Six in 10 businesses currently use AI, with 79% of those who do not, planning to use it soon. The significant uptake of AI reflects a growing awareness of its potential to streamline business processes, improve decision-making and enhance customer experiences.
Success factors: A customer-centric focus was the most critical factor for business success, cited by 61% of respondents across all demographics. Fewer than 1% of founders surveyed see ‘strong branding and marketing’ as a success factor.
Banking needs: The report also highlights the growing importance of digital banking solutions for startups, with challenger banks the preferred choice for 57% of respondents.