Immigrants are powering UK's fastest-growing start-ups, new analysis shows

"Immigrant founders are the driving force behind Britain's most dynamic young companies, according to new research showing that more than half of the UK's fastest-growing start-ups were founded by entrepreneurs born overseas. The study by The Entrepreneurs Network analysed 100 early-stage companies that saw the sharpest rise in their valuations in the year to May, based on investment rounds disclosed to Companies House, and found that 54% of founders were foreign-born, up from 39% in 2024 and the highest level since the think tank began tracking the data in 2019. Eamonn Ives, the organisation's research director, said the findings underline the pivotal role migrant entrepreneurs play in the UK economy."

""We see the sheer disproportionate role foreign-born founders play at the summit of Britain's start-up ecosystem," he said. "We should be welcoming them with open arms." The share of high-growth start-ups founded by first-generation immigrants far exceeds the UK's overall immigrant population, which stands at around 15%. The data arrives as Britain adjusts its immigration rules. From this month, graduates from 100 top global universities can apply for the government's new High Potential Individual visa, capped at 8,000 places a year."

"Several entrepreneurs highlighted in the report say the UK remains culturally open and supportive of foreign talent - but warn the visa system is still tailored to large companies rather than nimble, early-stage firms. Teru Adachi, founder of cyber-risk platform Aprio Technologies, relocated from Japan to launch his business in London in 2023. "The business community here is diverse and open-minded, with a healthy respect for innovation," he said."

More than half of the UK's fastest-growing start-ups were founded by entrepreneurs born overseas, with 54% of founders foreign-born, up from 39% in 2024 and the highest share since 2019. Analysis covered 100 early-stage companies and tracked sharp valuation rises based on disclosed investment rounds. The share of immigrant-founded high-growth firms far exceeds the national immigrant population of about 15%. New rules allow graduates from 100 top global universities to apply for a High Potential Individual visa, capped at 8,000 places annually. Industry groups urge expanded Global Talent provisions, lower administrative costs and faster routes to permanent residence for exceptional founders and families. Entrepreneurs report a culturally open business environment but warn visa rules favour large companies over early-stage firms.

Read at Business Matters