Nearly two thirds (65%) of UK small business leaders have not pursued a potential business venture because of a lack of confidence, new research by YouGov on behalf of the British Business Bank reveals.
This crisis of confidence is costing the UK over half a million potential business ventures that are not pursued.
A lack of confidence remains a major barrier to entrepreneurship. Over four in 10 (41%) small business leaders say a lack of self-belief was one of the biggest barriers to starting or growing their business. For more than a third (36%), fear of failure holds them back more than a lack of funding.
Young entrepreneurs are feeling the strain most acutely. 41% of 18-34 year olds feel they're not the ‘right kind of person' to run a business against an average of 30% across all age groups with 23% of the 18-34 year old cohort ‘strongly agreeing’ with the statement ‘I sometimes feel I'm not the ‘right kind of person’ to run a business, against only 2% of over 55s strongly agreeing.
More than a third (37%) of small business leaders have delayed launching their business due to lack of confidence, rising sharply to 57% among 18-34s.
The impact isn’t merely on potential – it’s also affecting business growth as almost four in 10 (38%) leaders have either delayed pitching to clients, or not pitched at all, due to confidence issues. The youngest are, again, those where the impact is most profound with the figure rising to 57% among 18-34s.
Business expansion plans are also being impacted, with 38% of all those surveyed having delayed or decided not to expand or scale their business due to their lack of belief.
Newport-based Louis Watkins, the 25-year-old founder of men’s skincare brand Clear for Men, knows only too well the challenges that a lack of self-confidence can bring for entrepreneurs.
He said:
“Imposter syndrome is something I’ve had to battle with a lot. I’ve definitely felt the pressures of being an entrepreneur, and there have been times when I’ve questioned whether I’m capable of doing it at all. In 2025 I doubted myself a lot, but over the past few months I’ve been able to restore my confidence and I feel really content on my journey.
“I’d be lying if I said I was always confident, but I remind myself every day how lucky I am to be doing what I’m doing, and that if I’ve got through the hard days before, I can get through them again. It’s about taking it day by day, staying consistent, not comparing yourself to anyone else, and reminding yourself why you started in the first place.
“There were so many moments where a lack of confidence could have stopped me going for opportunities or putting myself out there. When I applied for the Breakout Beauty UK programme, even though my business didn’t quite fit the criteria, it was a chance to put Clear For Men in front of some of the biggest names in skincare and to pitch to my dream retailer, Boots. I nearly didn’t apply, but that decision reminded me to always shoot my shot, because you never know what can happen.”
Louise McCoy, Managing Director of Start Up Loans Products, British Business Bank, said:
“At Start Up Loans, we believe in the power of ideas and the people behind them. Confidence should never be a barrier to pursuing your dreams. We’re encouraging entrepreneurs to back themselves – and we support them with developing a pre-application business plan and post-application mentoring.
“Like in other walks of life, new business owners are often affected by imposter syndrome. This is why we connect Start Up Loans recipients with mentors and provide other post loan support.”
