Low start-up costs boosting UK entrepreneurialism despite flagging economy performance

Low start-up costs for new businesses are contributing to a strong Entrepreneurship & Opportunity score for Britain.

The UK now registers a start-up cost score of 0.7 per cent of gross national income, compared with a global average of 20 per cent.

The finding means that Britain sits in sixth place in the Entrepreneurship & Opportunity sub-index of Legatum Institute's Prosperity Index. The Scandinavian nations of Denmark, Sweden and Finland currently sit in the top three places, while the UK figures above Hong Kong, Japan and Taiwan (15th, 23rd and 24th respectively), which are described by Legatum as 'traditionally strong export economies'.

The Entrepreneurship & Opportunity sub-index measures countries’ performance in three areas: entrepreneurial environment, innovative activity, and access to opportunity.

Furthermore, the index reveals that British inhabitants possess an 'increasingly equal' access to opportunities. Evaluated on a score of 1-10, with one being equal and 10 being unequal, the UK has progressed from 4.7 to 4.2 over the past three years.

Jeffrey Gedmin, president and CEO of the Legatum Institute, says that entrepreneurship, opportunity and good governance are time and again proven as significant drivers of prosperity.

He adds, 'And, at a time of stagnant growth, entrepreneurship will be a key catalyst of recovery.

'In order to take advantage of the opportunities on offer, UK citizens must be empowered with belief, drive and inspiration, and be given access to the ingredients needed to succeed - such as favourable business conditions, and access to capital.'

Despite the UK's rise in entrepreneurial relevance, 'poor economic performance' and 'low confidence' in the health of the UK economy could hold back Britain's prosperity, Legatum says.

The UK has fallen four places in the Economy sub-index since 2011, and now sits in 26th position.

Job satisfaction has been found to be 'particularly low' in the UK. Only 12.3 per cent of citizens say it is a good time to find a job, down on the 26 per cent in the US, and BRIC scores of 59 per cent, 27 per cent, 41 per cent and 37 per cent respectively for Brazil, Russia, India and China.