Helping the UK’s entrepreneurs back themselves – with confidence as well as capital

We know feelings of imposter syndrome are common among business owners, and that a lack of such confidence can be a very real barrier when moving from having a business idea to setting up a business.

Recent research conducted by YouGov for Start Up Loans highlights just how significant this challenge is in the UK. According to a national survey of UK small business leaders, nearly two thirds (65%) say they have not pursued a potential business venture because of a lack of confidence.

And two in five say a lack of self-belief has been one of the biggest obstacles when starting or growing a business. This can even outweigh perceived financial challenges, with more than a third saying fear of failure holds them back more than access to funding.

Confidence grows through experience

The findings suggest that what is often described as ‘imposter syndrome’ is affecting entrepreneurship in the UK more than we might assume, especially among a younger demographic. Nearly a quarter (23%) of people aged 18 to 34 agree with the statement that they sometimes feel they are not the ‘right kind of person’ to run a business. Among those aged over 55, the figure falls to just 2%.

More than a third of small business leaders also say they delayed launching their business because they lacked confidence, and among the same young founder age range that figure rises sharply to 57%.

Similarly, it extends beyond the initial launch of a business. Nearly four in ten business leaders say confidence issues have stopped them from pitching to potential clients, while a similar proportion have delayed plans to expand or scale their businesses.

Consequences of low founder confidence

When start-ups are postponed or abandoned, the economy loses potential jobs, innovation and growth.

And when potential founders don’t feel able to act on their ideas, the country loses out on new jobs, new products, more resilient local economies and in some cases exports.

However, in my experience speaking to Start Up Loans recipients, confidence often grows once founders begin engaging with the programme. This is in no small part due to the support and mentorship we’re able to offer loan recipients on an ongoing basis.

Founders and their insights on managing uncertainty

Saul Press, founder of craft beer company The Beer Hatch in Norwich, is one such example. After finding himself out of work during the pandemic, Saul decided to take a chance. With support from Start Up Loans, he initially launched a beer delivery service, cycling around the city delivering surplus draught beer from local breweries when people were stuck at home during lockdown.

As restrictions eased, Saul expanded his concept in an inventive way by opening what became known as ‘the UK’s smallest off-licence’. This was, in fact, a craft beer shop operating from a disused telephone box. The success of the venture has now seen him open a permanent shop in the centre of Norwich.

Reflecting on the experience, Saul emphasises that his own confidence has developed through proactivity rather than waiting for certainty before acting. When starting out he asked himself what the downside might be if the idea did not work. In his view, the potential risk was manageable and that realisation gave him the push he needed to move forward.

Other founders have shared similar reflections. Entrepreneurs such as Terence Chung, founder of Nuoceans, and Dan Levene, founder of Two Blues Solar, have also spoken about the self-doubt they experienced before launching their ventures.

Their stories reinforce a common theme that it’s normal, possibly even reassuring, for founders to feel uncertainty at the outset. Like Saul, they note that they were able to gradually build confidence through gaining experience, persistence and support.

The role of third party support

Support plays a critical role in helping entrepreneurs take their first steps, learn new skills and ultimately grow as business owners. Access to finance is just one part of that equation. Reassurance that guidance and mentorship are available is just as important, which is why Start Up Loans provides both.

Mentorship has the potential to be particularly valuable for founders experiencing imposter syndrome. Having someone with experience to discuss challenges, share advice and provide perspective helps us recognise and overcome uncertainty in all facets of life. Why should it be different in business?

To those thinking of starting a business

For many aspiring founders, the key may be to focus less on waiting until they feel completely ready and more on taking small, manageable steps forward. Each stage, from researching an idea to seeking advice or applying for funding, could help turn uncertainty into momentum.

Another entrepreneur who chose to back herself despite doubts is Ayr-based Rachel Munro, founder of allergen-free bakery The Rebel Baker, who says “Confidence grows through action, not waiting for the perfect moment. Imposter syndrome and self-doubt are part of the journey, but they often mean you’re doing something that matters.”

If you have an idea, with the desire to pursue it and turn it into a business plan, we are here to help you turn it into reality. As well as capital, our mentors and support networks are free to all first loan borrowers to help alleviate any doubt or concerns, while encouraging you to back yourself and follow your idea to fruition.

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