5% of UK new business plans are failing in the UK
With nearly half of UK adults (47%) considering starting a business or side hustle this year, up 12% from the year previous, it’s clear that entrepreneurial ambitions are more alive than ever before. But amid factors such as a challenging economic climate, fears of failure, and struggles to scale due to access to finance, what is the true state of entrepreneurship in the UK?
Adobe Express has conducted an extensive study that explores the current states of business plans, the challenges people face within these, and how their business has progressed against their original business plan. Adobe Express also spoke to established business owners as well as new small business owners to improve the depth of findings, as well as tracking results across a variety of different industries.
Currently, 20% of business owners have a detailed formal plan, 47% have a basic outline, 23% are working on a plan and 10% don’t actually intend to create a plan at all.
In spite of this, the majority of those surveyed met or exceeded their targets over the last year, with just 5% coming in below target:
| How well has your business performed against the targets outlined in your current business plan in the last 12 months? | Percentage |
Significantly exceeded targets | 15% |
Moderately exceeded targets | 41% |
Met targets | 14% |
Below targets | 5% |
Adobe Express also found that despite many business owners lacking a detailed formal plan, confidence levels in their approach were fairly high:
| How confident are you in your current business plan (or the plan you are developing) to achieve your business goals in 2025/2026? | Percentage |
Not at all confident (1) | 2% |
(2) | 6% |
(3) | 27% |
(4) | 39% |
Extremely confident (5) | 23% |
UK business owners also shared the biggest challenges they are currently or anticipating facing with their business plan. Their primary concern was the economic downturn or recession concerns (25%), followed by adapting to rapid technological changes (12%).
Despite fears around technological changes, 27% of those surveyed admitted that they weren’t currently using AI-powered tools or resources to help with aspects of business planning, with 11% of these citing being unsure of AI tools that are available in the domain of business planning.
In response to this, Adobe Express have compiled their tips for getting started with business planning.
Top tips on getting started with your business plan
Whether you’re launching your first venture or fine-tuning your strategy, a well-thought-out plan can make all the difference. So, based on the above insights, here are a few final tips to bear in mind:
· Be flexible: From our survey, it’s clear that your plan needs to be flexible enough to easily adapt to change. Whether it’s market shifts, evolving customer trends, or new technologies, being able to pivot is key.
· Carry out thorough market research: Take the time to research your market and understand where your product or service fits (and who your competitors are). The more data you gather, the more confident you’ll be in making smart, informed decisions.
· Set clear goals: It’s crucial to outline both short-term and long-term objectives in your plan, as well as making sure they are specific and measurable.
And remember, whether you’re just starting out or looking to refine an existing plan, here at Adobe Express, we’ve got a variety of tools to help you bring your ideas to life. Try our latest AI advancements to create a visually engaging plan that’s compelling, professional, and leaves a lasting impression.
How well have businesses in each industry performed against the first year targets of the business plan?
- 50% of businesses in the environment and agriculture and media and internet spheres significantly exceeded their annual target, the highest of any industry surveyed.
- Most industries generally met or exceeded their annual targets, with the exception of legal businesses where one third (33%) claimed to be slightly below targets, alongside 17% of hospitality and events businesses.
- Creative arts and design businesses were one of the only businesses to report being significantly below annual targets, with 8% of them claiming as such.
- 11% of those in Accountancy, banking and finance have no confidence at all that their plan will work, but the data found that 24% of these businesses significantly exceeded targets, 28% moderately exceeded targets, and 24% met targets, with the remaining 24% of respondents being not applicable due to being a new business.
Considering the current economic and market conditions in 2025, how optimistic are UK cities about the prospects of their industries?
- Glasgow came out on top for optimism regarding their respective industries, with 44% reporting that they’re extremely optimistic in face of the current economic and market conditions. However, 33% of people also claimed that they have had to significantly pivot their original business plans.
- Meanwhile, Norwich was the most concerned about economic and market conditions, with 14% stating that they were ‘not at all optimistic’. But equally, 18% of people there also said that they aren’t confident about their business plans at all, suggesting that their optimism hasn’t only waned due to the current market.
- 42% of those in Southampton haven’t had to change their business plans at all, but have also performed extremely positively against annual targets, with 19% significantly exceeding, 38% moderately exceeding and 25% meeting targets.