Entrepreneurs don’t predict the future – they create it

If the UK economy were an individual stock, it would come with a strong “buy” recommendation. Despite having faster growth than other G7 countries, world-class universities, globally respected legal institutions and political stability, our stock market is valued at a discount to almost any other big economy and the number of private companies seeking growth capital from public markets is approaching historic lows.

Our potential is huge, but unless something changes, we will all be poorer in the future. Opinions vary on the biggest challenges facing the UK, but the need to improve productivity is high on the list. How we approach this next stage of Britain’s future will define our collective prosperity for a generation. It is imperative that the new government demonstrate the ability and desire to support the group that will lead this transformation.

Growth will not be led by the public sector or centralised quangos, it will be created by a group of people who transcend all tech and policy changes: entrepreneurs. Entrepreneurs are wired differently, and in a way that many behavioural economists fail to understand.

They don’t make decisions based on perfectly logical data and information. Instead, they have a vision for the future that others can’t see, possess a deep passion and tenacity to bring their vision to life, and usually a strong element of bloody-mindedness that refuses to give up long past the point of rational thinking.

As a group we are far from perfect – by definition, if you exist to push the envelope, every now and then you will push too far. But without entrepreneurs, the world would have progressed at a fraction of the rate it has already or has the potential to in the future. We now live in a globally connected and therefore globally competitive world.

Politicians need to recognise this and have clear long-term strategies to attract entrepreneurs to the UK. French president Emmanuel Macron may not be the most popular politician in Europe, but he has made France a more attractive place for wealth-creators and risk-takers. The new government needs to make its intent towards entrepreneurs clear – and soon.

So far, the focus has been firmly on other areas and there has been a distinct lack of understanding that it is the energy, ideas and ingenuity of business creators that will allow Sir Keir Starmer to achieve his objective of making the UK the fastest growing economy in the G7. Giving train drivers above-inflation pay rises is not likely to have the same impact.

How many of the current cabinet have started their own business? Do they know what it feels like to take the risk of hiring new staff based on your belief of growth that may not materialise? Or invest in a new factory or warehouse that will only show its worth far beyond the usual five-year political term?

Entrepreneurs are constantly making near-term sacrifices in return for longer-term gains – the public sector can’t replicate this. The lack of support for these people can only go on for so long before it has a seriously negative impact. The vast majority of founders I know are proud patriots – it gives them genuine pleasure to create jobs, pay taxes, and deliver products and services that enhance the communities in which they operate.

They love the UK and want to make it a better place to live for everyone. But they are also deeply competitive and want to make their companies as successful as they can. If they can do that elsewhere, they will. More entrepreneurs have said to me in the past 12 months that they are seriously considering leaving the UK than ever before.

This isn’t a party-political criticism, but rather a genuine risk that some of the most talented people in the country will choose to leave, which will not benefit anybody. The autumn statement must include policies that demonstrate that this Government understands and supports business owners.

The message from entrepreneurs to policymakers is clear – we want to create wealth that benefits all. Back us, and your investment will be repaid tenfold.

Tom Beahon is the co-founder and chief executive of the sportswear brand Castore