Report findings demand action to tackle entrepreneurship inequality

The UK lacks a robust support system for entrepreneurs who have experienced economic hardship, according to the final report of The Maple Review, an independent UK-government-backed study.

Following a year-long inquiry, spearheaded by Small Business Britain and supported by Xero, drawing on a national survey of more than 600 entrepreneurs from low-income backgrounds, the Review highlights the opportunities entrepreneurship can provide for the 14.3 million people currently living in poverty in the UK. 

The report concluded that existing support and information systems are falling short and fail to reflect the fears of instability and lack of safety nets experienced by this demographic.  

The Review proposes eight recommendations for central and local government; financial institutions; and business-support organisations to help build a more inclusive economy.  

It also identified significant gaps in access to finance for aspiring entrepreneurs from disadvantaged backgrounds. Nearly two thirds (63 per cent) of founders lacked personal savings to invest, while half (50 per cent) did not know how to access finance. Almost half (47 per cent) struggled to secure start-up loans or grants, and the same proportion lacked confidence in taking on debt.  

At the same time, small amounts of flexible capital – often between £100 and £5,000 – were repeatedly identified as transformative for helping founders start or stabilise a business, yet difficult to access through mainstream finance options. 

One key recommendation from the Review is the introduction of a national micro-capital system. It proposes loans ranging from £100 to £25,000, alongside budgeting, cash-flow and forecasting support, to help founders build confidence, reduce risk and progress towards mainstream lending over time. 

Michelle Ovens CBE, chief executive and founder of Small Business Britain, said: “Economic deprivation at any point in life is the biggest barrier to starting and growing a business, and that is exactly what The Maple Review is looking to address.

"At Small Business Britain, we believe that everyone should have the opportunity to be an entrepreneur, no matter their background or experience, but it is clear from the Review’s data that is currently not the case. 

“The eight recommendations of this Review get right to the heart of this challenge and will have a considerable impact on both addressing poverty and increasing entrepreneurial opportunities in the UK. They will also improve outcomes and skills for the whole population, addressing skills, finance and barriers to other marginalised communities too.” 

Kate Hayward, UK managing director at Xero, said: “Too many people with the drive to start a business are still being held back by barriers they should not have to face alone. The Maple Review has shown clearly what needs to change, but the priority now is action.

“My particular concern is for founders without a financial ‘cushion’, where confidence around cash flow is fundamental to survival. At Xero, we want to help open more doors to entrepreneurship and look forward to helping make these recommendations a reality.”  

www.smallbusinessbritain.uk

The Maple Review

Pictured: Michelle Ovens, CBE