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The UK is in continued decline as a home for entrepreneurs and new businesses, failing to secure a spot in the top 20 most attractive markets globally for entrepreneurs for the sixth year running, the Opinium Global Entrepreneurship Index 2025 reveals today.
As the Government seeks to boost economic growth with Wednesday’s Spring Statement, the analysis finds that the UK is only the 23rd best place to set up a new business, and falls behind a significant number of European and global rivals. The UK achieved its highest ever position in the Index more than a decade ago, in 2013, when it ranked 16th.
Public opinion mirrors the results from the index, with almost half (48%) feeling that the UK currently has the wrong economic conditions for entrepreneurs to start and scale up a business. With three in five (59%) believing that strong economic growth will not return this year, the public think the chancellor will need to focus on improving the overall economic conditions facing businesses (42%) in the Spring Statement to help entrepreneurs deliver jobs and growth.
Chris Curtis, co-chair of the Labour Growth Group, comments:
“This is a stark warning for Britain. For six years, the UK has remained outside the top 20—an indication of the tough economic inheritance we face and a reminder that driving economic growth must be this government’s top priority. There is an urgent need to strengthen our digital infrastructure, invest in skills, and ensure Britain remains an attractive place to do business. High costs, weak infrastructure, and uneven demand are stifling our potential—we are determined to change that. Our goal is clear: to build a dynamic, high-growth economy that puts money in people’s pockets and creates opportunities for all.”
Danielle Dunfield-Prayero, Chair of the new Conservatives For Business group, added:
“Great Britain has a proud tradition of invention and entrepreneurship. To secure the growth needed to thrive in an increasingly complex and uncertain world, the government must empower and champion this legacy. Making the UK the premier destination for starting and scaling businesses should be both a priority and a key measure of success.”
The 2025 Index reveals:
UK in decline:
The UK’s regional inequality, with innovation activity heavily concentrated in hubs like Cambridge, Oxford, and London, limits the market reach for startups outside these clusters; while its role as a hub for trade has diminished over the long term, particularly following Brexit, restricting the scale of opportunities available to entrepreneurs. Digital infrastructure challenges persist; full fibre broadband coverage remains behind many EU nations, 5G mobile connectivity is less widespread and reliable, and the high costs of upgrading and maintaining networks has slowed infrastructure improvements.
Female entrepreneurs slowly on the rise:
Positively, female workplace participation has increased, and the UK now ranks 11th out of 39 European countries included in the Index for this – an improvement of 7 places since 2011, indicating relative improvement beyond the UK’s European neighbours. This increased female participation in the economy has helped drive the number of female entrepreneurs. However, only 36% of self-employed people in the UK are women, up only 6 points since 2011, suggesting progress still has much further to go.
Singapore claims top spot as the ultimate entrepreneurial hub:
Opinium’s 2025 ranking shows that the Asian Tigers dominate the economies most attractive to new enterprises. Singapore and Hong Kong have secured the first two positions, scoring with Macao following closely in fourth place. Both markets top the market potential pillar and the connectedness pillar, marking them as highly connected and accessible economies with strong opportunities for global growth.
USA scrapes into top 30: Opinium’s report found the USA faces significant challenges in human capital, with a mismatch between the skills employers need and the available workforce, compounded by a less dynamic labour market with fewer job transitions. Rising health issues, such as obesity and mental health concerns, have further impacted productivity, while the declining labour force participation rate, worsened by early retirements in the pandemic, limits talent for entrepreneurial ventures.
RankScore out of 100MarketRankScore out of 100Market192Singapore1682Finland290Hong Kong1781South Korea389Denmark1880Germany487Macao1980Canada586Luxembourg2080Malta686Sweden2179Austria786Switzerland2279Estonia884Iceland2379United Kingdom984Norway2477Ireland1083Netherlands2577Israel1183United Arab Emirates2677Spain1282Australia2776France1382Belgium2875Czechia1482New Zealand2975Portugal1582Japan3075United States
Despite these challenges, the UK has strength in its stable and effective government institutions and regulatory environment, while ongoing efforts to enhance the UK workforce’s diversity, skills, and participation rates indicate positive signs that could improve its ranking in future.
James Crouch, head of policy and public affairs at Opinium, said:
“Entrepreneurship is the driving force behind innovation and growth. But Opinium’s latest report suggests the UK is falling behind as key competitors fuel the engine room of global growth. Much of what we have seen is that the current economic conditions are not right for businesses to start and thrive in the UK, and entrepreneurs will be looking to the government to provide a big gear shift to help them compete on the global stage.”