By Adam Graham, CEO, JustFix
The UK’s economic future is intrinsically linked to the vibrancy of its entrepreneurial ecosystem. As CEO of JustFix, I’ve observed the transformative power of innovation first-hand, and I’m convinced that supporting entrepreneurs is not just a business strategy, but a national imperative. However, the terrain is shifting, and we must adapt to ensure the UK remains a global leader in innovation.
Recent reports of multimillionaires leaving the UK, with an estimated 10,000 departures in 2024, paint a concerning picture. This exodus raises critical questions about our competitiveness and the incentives we offer to wealth creators. We cannot ignore this trend; we must address the underlying factors driving it.
Yet, amidst this challenge, a new breed and demographic of entrepreneur is emerging. As well as a marked rise in female entrepreneurs, these are younger business owners driven not only by sustainability but by innovation transfer and the democratisation of technology. This isn’t about replicating old models; it’s about reimagining entire industries. Consider the builder who leverages AI to optimise operations and enhance customer experience or a plumber tradesperson who sees the potential of emerging tech to revolutionise their service offering. This is the future of entrepreneurship: applying cutting-edge technology to traditional sectors, creating new value propositions, and driving efficiency.
This “transfer of innovation” is a crucial concept. It’s about empowering individuals from traditional sectors to become digital entrepreneurs. We need to foster a mindset where these individuals see themselves not just as tradespeople, but as potential tech innovators.
Technology is the catalyst for this transformation. As the Harvard Business Review argues, digital innovation is no longer a luxury but a necessity for businesses to thrive. It’s the engine that powers scalability, enables disruption, and creates new markets. According to the UK government’s Digital Strategy, fostering digital adoption is crucial for boosting productivity and economic growth.
The New Entrepreneur Archetype
Who are these new entrepreneurs? They are often younger, digitally native, and driven by a strong sense of purpose. They are not afraid to challenge the status quo and embrace emerging technologies. They are also sustainability-focused and driven by a desire to create solutions to real-world problems and build businesses that have a positive impact.
Finding and Supporting the Next Generation
How do we find and support these younger entrepreneurs? We need to:
- Foster a culture of entrepreneurship in education: Encourage students to develop entrepreneurial skills and mindsets from an early age.
- Provide access to mentorship and resources: Connect young entrepreneurs with experienced mentors and provide them with access to resources such as co-working spaces and funding.
- Create platforms for collaboration: Facilitate collaboration between young entrepreneurs, established businesses, and investors.
- Embrace emerging technologies: Provide access to training and resources on emerging technologies such as AI, blockchain, and the metaverse.
The resurgence of IPOs and the evolving dynamics of entrepreneurship signal a potential turning point. After a period of relative stagnation, the City of London is showing signs of renewed activity. Recent listings, such as the £25 million raise on Aquis, demonstrate a renewed appetite for investment. This is a welcome development, as access to capital is crucial for entrepreneurs to scale their businesses.
However, a critical question remains: are banks and investors truly welcoming new entrepreneurs and paving the way for entrepreneurship, especially for those under 30? While the recent IPOs are encouraging, we need sustained momentum and broader access to capital. Traditional banks have often been reluctant to lend to early-stage ventures, citing risk aversion. Are they adapting to the needs of modern entrepreneurs?
The City of London, a global financial hub, plays a pivotal role in supporting entrepreneurship. By opening its doors to innovative companies and providing access to a wider pool of investors, the City can fuel the next wave of entrepreneurial success. Initiatives like the London Stock Exchange’s AIM market have been crucial, but we need to go further.
What else can the finance world be doing to support entrepreneurs? Beyond traditional lending, banks and investors could explore:
- Venture debt: Providing debt financing to venture-backed companies, offering a less dilutive alternative to equity.
- Angel investor networks: Expanding and supporting angel investor networks to provide early-stage funding and mentorship.
- Specialised funds: Creating specialised funds focused on specific sectors, such as deep tech or sustainability, to address the unique needs of these businesses.
- Simplifying funding processes: Streamlining application processes and reducing bureaucratic hurdles to make it easier for entrepreneurs to access funding.
- Education and mentorship: Providing educational resources and mentorship programs to help entrepreneurs navigate the complexities of fundraising.
The City’s role extends beyond providing capital. It must also foster a supportive ecosystem for entrepreneurs, offering mentorship, networking opportunities, and access to talent. As The Economist has noted, the concentration of talent and resources in London makes it a natural hub for innovation. However, we must ensure that the benefits of this growth are shared across the UK, creating opportunities for entrepreneurs in all regions.
To support entrepreneurs and foster a thriving economy, we need to address several key challenges:
- Taxation and regulation: The UK must maintain a competitive tax environment and streamline regulations to attract investment and reduce the burden on businesses. According to the Office for National Statistics, the UK’s business investment has been lagging behind other developed economies, highlighting the need for more favourable conditions.
- Skills development: Investing in education and training programs is crucial to equip the workforce with the skills needed for the digital economy. As highlighted in a recent report by the Confederation of British Industry (CBI), skills shortages are a major barrier to growth for UK businesses.
- Infrastructure development: Investing in digital infrastructure, such as broadband and 5G, is crucial for supporting the growth of technology-driven businesses. Ofcom’s latest report on broadband speeds highlights the need for continued investment in this area.
- Promoting innovation: Encouraging collaboration between businesses, universities, and research institutions is essential for driving innovation and technology transfer. Initiatives like Innovate UK play a vital role in this area.
The challenges are real, but so are the opportunities. By creating a favourable economic environment, and by the financial sector actively welcoming and investing in new entrepreneurs, we can unleash the entrepreneurial potential of the UK and build a thriving economy for the future. The City of London has a crucial role to play in this endeavour. By opening its doors to innovation and supporting entrepreneurs, it can become the engine of growth for the UK economy.
About Adam Graham:
Adam Graham is a seasoned entrepreneur with 25 years of experience in building, scaling and selling successful ventures. With an eye to new markets and in particular new technologies and the digital space, Graham has led two successful exits, ran a global public company with a market cap of £250M at its peak and, today, is the driving force behind JustFix a rapidly expanding digital platform poised for IPO that is transforming the home maintenance industry. Graham also advises companies on mergers and acquisitions, leveraging his expertise to drive growth and value creation.
Throughout his career, Graham has demonstrated an aptitude for building high-growth businesses by pioneering early digital media platforms, consistently exceeding revenue targets and establishing strong market positions. His leadership style is characterised by a passion for innovation, achieving operational excellence and a talent for assembling high-performing teams.
