A new survey reveals 21% of UK founders plan to exit the country within the next year, signaling a potential brain drain as confidence in the business environment plummets. The London-based Entrepreneurs Network report captures widespread disillusionment among startup creators who face mounting challenges in building their businesses domestically.

Government relations appear particularly strained, with just 3% of founders believing ministers understand their needs while 86% strongly disagree. Economic pessimism runs deep, with 76% forecasting poor conditions ahead and 76% reporting fundraising difficulties. More than half (55%) say innovation faces significant barriers in the current climate.

The data suggests shifting political allegiances among entrepreneurs, with the Conservative Party leading at 25%, followed by Liberal Democrats at 16%. The governing Labour Party trails with just 8% support. "Entrepreneurs are inherently optimistic, so when confidence drops to this extent, it's worth paying attention," said Philip Salter, Founder of The Entrepreneurs Network.