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The Start Gap Report

We’ve surveyed 1,000 UK adults who are considering starting a business to discover their biggest challenges, motivators, and obstacles impacting their decision to become entrepreneurs.

At  NatWest, we want to tackle ‘wantrepreneurship’, the idea that there are many people who want to start a company, but don’t because of the hurdles in their way. To gain a deeper insight, we surveyed 1,000 UK adults who were considering starting, or had taken steps to start, a business. 

In our report, we uncover some of the challenges they face when starting a business, including their main concerns and sources of support and inspiration.

As we’ll learn, bridging the ‘start gap’ and getting small business ideas off the ground isn’t just great for the next generation of entrepreneurs, but for the economy too.

Data collection: 1-4 September 2025.

What is the Start Gap Report?

NatWest and Mettle created the Start Gap Report to explore the different factors and challenges people face when looking at how to start a business. It examines this ‘gap’ – the skills and resources aspiring entrepreneurs need when setting up shop – and how best to bridge it.

The aim is to provide the right support to entrepreneurs to help get their small business ideas off the ground – not just because it’s a nice thing to do, but because it’s vital for the UK economy. 99% of the business population is made up of small to medium-sized enterprises (SMEs). Not only that, these companies accounted for 60% of UK employment and 52% of turnover in 2024.

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Key findings

  • The ‘start gap’ is real. 40% of aspiring entrepreneurs feel overwhelmed or uncertain about where to begin and what steps to take to build their business plan.
  • Money on the mind. The instability of not having a regular pay cheque is a major concern. More than one in four (26%) said their biggest practical worry was forgoing   a stable salary and benefits.
  • Bridging skills gaps. Nearly one in five (17%) aspiring entrepreneurs doubt their confidence in selling or marketing their service/product.
  • Managing misconceptions. Almost one third (32%) believe that you need to have a completely unique small business idea or invention to get started.
  • External influences. While social media inspires 36% of entrepreneurs, over one in five (21%) feel pressured to achieve similar levels of success.
  • Mentorship matters. Mentorship from someone with previous experience is the top confidence booster (15%), highlighting the value of guidance from knowledgeable entrepreneurs.

What inspires people to start a business?

Both personal experience (including previous jobs) and family equally influenced 26% of respondents, followed by social media (23%), friends (21%), and partners and professional mentors (both 20%). This illustrates that many people lean on the confidence and assurance found in personal knowledge and external support from loved ones. Accessing this initial assurance – whether through themselves or others – seems to play a vital part in starting your own business.

Chaye Hall

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Watch Chaye’s journey of building her beauty business, and see how she incorporates her personality into her brand.

Generational influences on starting a business

Gen Z

  • 41% cited social media as a key source of inspiration when starting a business
  • 21% said they were motivated by professional mentors to get started

Millennials

  • 26% said social media was a key source of inspiration when starting up
  • 25% said they were influenced by professional mentors

Gen X

  • Only 12% said that social media inspired them to start a business
  • 11% of Gen X said they found inspiration in professional mentorship

Boomers

  • Just 6% of boomers said social media inspired them when starting their business
  • Only 10% said they were influenced by professional mentors

What challenges do aspiring entrepreneurs face?

The main mental challenges that aspiring entrepreneurs face when setting up a business are feeling overwhelmed and uncertain (40%), especially about where to begin. Next is the fear of failure (33%), followed by doubts over their abilities (27%), and the misconception that they’ve missed their chance to start a business (26%). 

The key pattern here is self-doubt, highlighting the importance of providing the right support at the right time.

Cath and Andrew Broadhead

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See how Cath and Andrew left the corporate world to enter the farming industry.

The biggest practical worries about starting a business

Forgoing a stable salary and benefits is the biggest practical worry (26%) people have when starting a business, highlighting the financial risks associated with entrepreneurship. Next come concerns over knowing how to navigate complex financial admin tasks (25%) and worries over starting a business in an uncertain economic climate (25%).

26%

Forgoing a stable salary and benefits

25%

Navigating complex tax, financial, and administrative tasks

25%

Starting a business in an uncertain economic climate 

24%

Managing all aspects of the business independently 

24%

Difficulty obtaining funding or investment

Practical and financial insights

Concerns over stable salaries, financial knowledge, economic uncertainties, and funding troubles are all close on people’s practical worries list. While some of these things are beyond their control – for example, the performance of the UK economy – it does highlight a knowledge gap for many aspiring entrepreneurs. 

Providing financial and investment guidance (and, importantly, the confidence found in this knowledge) could make all the difference when shifting from ‘wantrepreneur’ to entrepreneur.

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What business skills do adults doubt the most?

Many people cited confidence in their ability to market their product (17%) as their top doubt. Meanwhile, uncertainty when creating a business plan, taking risks, and their ability to stay motivated (11%) all sit in second place. There were also concerns about understanding how to manage finances (10%). 

Bridging this knowledge and confidence gap for entrepreneurs can be tricky, especially if they’re completely new to starting a business.

Building the confidence to start a business

Throughout our report, we can see there’s a clear connection between understanding how to manage a business and the associated finances, and confidence in taking those first steps. 

Indeed, 15% said that mentorship from an experienced business owner would give them the confidence to start a business. Meanwhile, 13% said they would appreciate clear guidance, and 12% believed they’d get the boost they needed from the right financial support.

Keith Webster

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Listen to Keith's story on how he started his own pottery business in an untypical rural area.

Get to know our range of accounts

You’ve got to start somewhere and, at NatWest, we’d like to think we provide the perfect launchpad. Our NatWest and Mettle business accounts are designed for start-ups with the tools, features and support you need when starting your own business. See which one might be right for you.

Browse our range of accounts Open in new window

Over 18s only. Specific accounts and services eligibility apply.

More help and support for aspiring business owners

If you’re starting or growing a business and looking to increase sales, find funding, or sharpen your leadership skills, we have the practical tools, coaching and connections for you.

Join the NatWest Accelerator today. Find out more and download the app to get started.

Further reading and support:

Entrepreneur Hub Open in new window
Business Insights Open in new window
Sector Trends Open in new window
Mobile device and briefcase
Business Bank Accounts Open in new window