Can Britain compete? What growing businesses need to thrive in 2026 and beyond

Britain has no shortage of people starting businesses. By most international measures, the UK remains one of the strongest startup ecosystems in the world. The harder question is what happens next. Too many businesses stall before they reach scale, not because founders lack ambition, but because the conditions around them make growth harder than it needs to be.

If the UK wants to compete in the years ahead, the focus must shift from celebrating new ventures to supporting businesses as they grow. That means addressing the practical barriers founders face once early momentum gives way to more complex decisions about markets, talent, capital and leadership.

Scale ups are not just bigger startups

One of the most persistent mistakes in business policy and support is treating all small and medium sized businesses as if they are the same. They are not. A business employing five people faces very different challenges to one employing fifty, even if both are technically SMEs.

Scale ups sit in a distinct phase. They are past proof of concept but still vulnerable. They need systems, people and capital that can support sustained growth rather than survival. These businesses matter disproportionately. A relatively small number of scale ups generate the majority of economic output and job creation within the SME economy.

Yet many founders in this phase find themselves navigating fragmented support, generic advice and policies that do not reflect how modern businesses actually operate. Growth slows not because opportunity disappears, but because friction increases.

Capital exists, but access remains uneven

Finance is often framed as the primary barrier to growth. In reality, money is part of a wider system. The UK has significant pools of capital, but much of it does not reach growing businesses at the point they need it most.

Early stage finance has improved over the past decade, with startup loans and seed funding more widely available. The challenge intensifies as businesses look for larger, longer term investment. Institutional risk appetite remains cautious, and equity finance outside London is still unevenly distributed.

For founders, this means growth capital is not simply a question of valuation or pitch quality. It depends on geography, networks and familiarity with the investment landscape. Businesses that understand how to position themselves, build relationships early and explore regional funding routes are better placed to move forward when opportunities arise.

At the same time, access to finance is not limited to investment. Cash flow matters. Late payment continues to restrict confidence across supply chains, forcing businesses to absorb risk that larger organisations are better placed to manage.

Productivity starts inside the business

Productivity is often discussed as a national problem, but it is shaped daily by decisions made inside individual businesses. The UK’s weak productivity growth over the past decade reflects patterns founders recognise well. Investment is delayed. Technology adoption is uneven. Management capability does not always keep pace with ambition.

Improving productivity is rarely about working harder. It is about producing more with the same resources. That requires clarity of priorities, better systems and stronger leadership. Founders who invest in management skills, process improvement and appropriate technology consistently outperform those who rely on instinct alone.

There is also a confidence element. Uncertainty discourages investment. When budgets, regulation or demand feel unpredictable, businesses hesitate. The result is a cycle where caution limits progress, and limited progress reinforces caution.

Markets matter more than funding

For many growing businesses, access to markets is a bigger constraint than access to money. Winning customers, securing contracts and building reliable demand underpin every other decision.

Exporting remains one of the most effective routes to growth, yet many businesses struggle to make the leap without practical support and trusted connections. Similarly, public sector procurement has the potential to unlock growth, but slow and complex processes often have the opposite effect. When contracts are delayed or unclear, businesses defer hiring, training and investment.

Corporate supply chains also play a critical role. When larger organisations buy from smaller ones, pay promptly and support innovation, they create conditions for growth that no grant or loan can replicate. Where this does not happen, progress slows across the ecosystem.

Learning accelerates through people, not programmes

Founders consistently learn fastest from others who have already navigated similar challenges. Formal courses have their place, but growth rarely follows a textbook. It follows judgement calls made under pressure.

Mentoring and peer networks provide perspective that is difficult to replicate elsewhere. A good mentor does not offer instructions. They help founders think more clearly, challenge assumptions and avoid repeating avoidable mistakes. Peer networks create shared understanding and reduce isolation, which remains one of the least discussed barriers to growth.

Importantly, these relationships work best when they are grounded in real experience. Advice carries weight when it comes from people who have built, scaled and sometimes failed themselves.

What needs to change

Britain does not lack entrepreneurial talent or ideas. The gaps lie in how effectively opportunity, capital and capability are connected to the businesses ready to grow.

For founders, the path forward is not about waiting for perfect conditions. It is about strengthening productivity inside the business, building access to markets, investing in leadership and actively seeking out networks that accelerate learning.

For the wider system, the priority should be reducing friction. Paying businesses on time. Making procurement more predictable. Encouraging long term investment. Supporting skills development that reflects how businesses actually operate.

Growth is rarely the result of a single intervention. It comes from many small improvements working together. When those pieces align, businesses move faster, with more confidence and fewer false starts. That is where Britain’s competitive advantage still lies, if it chooses to support it properly.