A growing number of British entrepreneurs are considering selling their businesses earlier than expected, driven by recent tax policy changes and economic uncertainty, according to new research commissioned by Brown Shipley, a UK wealth manager.
The nationwide survey, which polled 4,000 adults, revealed that 38% of UK entrepreneurs are now planning to explore selling their businesses sooner than anticipated, a shift prompted by tax changes announced in the October 2024 Budget. Additionally, 44% of entrepreneurs stated that the rise in National Insurance contributions is impacting their growth strategies.
The economic landscape, coupled with these tax pressures, is accelerating decision-making for many entrepreneurs. The research found that over a third (36%) of business owners now intend to sell their businesses outright to lock in value and manage personal wealth — a significant increase from 21% in January 2024.
Financial risk is also becoming a more pressing concern. In the wake of the Budget announcement, 40% of entrepreneurs indicated they are seeking external investment to reduce risk, up from 25% at the beginning of the year. A smaller proportion (37%) are looking to raise funds to support business growth.
Succession planning is another area gaining importance, with many entrepreneurs focusing on wealth preservation. Despite ongoing changes to UK inheritance tax, one in three business owners plan to reduce their equity stake while maintaining family ownership. Younger entrepreneurs, particularly those aged 18-34, are more likely to consider this approach, with nearly half (49%) of them planning to reduce their stake, compared to just 10% of those aged 55 and over.
A generational divide also emerges in succession preferences, with 53% of younger entrepreneurs favoring employee buyouts or leadership transfers, while only 9% of older business owners express the same interest.
Entrepreneurs’ confidence in their financial planning appears to be growing. Over half (54%) of business owners now report feeling confident in their long-term strategies, up from 47% in January. Among younger entrepreneurs, confidence is even higher, reaching 68%.
Simon Smith, Head of Private Banking (South) at Brown Shipley, commented on the findings, noting that the results reflect the evolving conversations the firm is having with clients. “Confidence in the UK market is more fragile than it has been in recent years, and entrepreneurs are taking a pragmatic approach to succession and wealth management,” he said. “Inheritance tax reform is clearly influencing their long-term strategies, as founders look to secure their business legacy for future generations.”
The research highlights a shift in entrepreneurial attitudes, with a growing focus on risk mitigation, intergenerational wealth planning, and adapting to an increasingly volatile fiscal environment.
