After the 2008 crisis, the UK government sought to revitalize its economy by fostering a startup-friendly environment dubbed "Incubator Britain." While this initiative successfully spurred numerous tech startups, it fell short in facilitating their scaling. British software companies currently face significant challenges that delay their growth, often taking longer to reach revenue milestones than their US counterparts. Given their substantial contribution to the economy, addressing these barriers is essential not only for the startups but also for global competitiveness and economic revival.
Amid the economic malaise, a policy reshaping aimed to turn the UK into "Incubator Britain" using tax breaks and funding to spur startups, but not scaleups.
British software firms take almost twice as long to scale from £10mn to £100mn compared to US firms, stunted by persistent growth barriers that remain unaddressed.
The scaleup sector, constituting only 1% of UK SMEs, generates a significant 22% of SME turnover, underscoring its critical role in economic growth.
Without addressing scaleup barriers, the UK risks losing our promising tech firms to foreign markets, which would impact jobs and innovation significantly.
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