The Entrepreneurship
Revolution
The digital edge driving Britain’s entrepreneurial success
Introduction
Britain’s economy is changing – and fast. Household budgets remain under pressure, and small businesses lose out on £4 billion each year because viable firms can’t access finance. Yet against this backdrop, a quiet entrepreneurship revolution is underway.
People in Britain are finding new ways to take control of their economic futures. Nearly 2 in 5 young people now run a side hustle, that’s almost 6 million budding entrepreneurs. 1 in 10 adults wants to start a business in the next year, which would almost double the number of UK firms. People are turning to new tools to help them spend and save; over a third of people used Buy Now, Pay Later (BNPL) in the past year to help manage their finances, while we project that 1 in 3 could own cryptocurrency by 2035 as confidence in traditional ways of saving money declines.
This isn’t a niche shift, it’s a structural change. Consumers and entrepreneurs are moving faster than the systems designed to support them. Banks still reject tens of thousands of creditworthy SMEs. Regulation is not keeping pace with new technology. Government programmes, built for an analogue economy, struggle to keep up with a digital one.
Block’s ecosystem — Square, Clearpay, Tidal and Bitkey — is helping bridge that gap. By giving small businesses access to finance based on real-time data, helping consumers manage cash flow flexibly, and empowering creators to earn sustainably, Block shows how technology can unlock inclusive growth.
With the right support from Government we can unlock the potential of digital technology to drive renewed growth and consumer confidence. This report dives into the trends shaping the future of British entrepreneurship – highlighting how digital technology can unlock a new wave of consumer and business confidence, with recommendations to Government to further reap the rewards of the UK’s entrepreneurship revolution.
Block, Inc. builds technology to increase access to the global economy. Its ecosystem includes Square for commerce and financial services, Clearpay for flexible payments, Tidal for artist empowerment, and Bitkey for bitcoin self-custody. Together, Block is creating a more inclusive financial system that empowers entrepreneurs. Learn more at block.xyz.
Block’s family of products in the UK
Square helps businesses, grow and run smoothly with tools for selling, payments, cash flow management, and staff management. Trusted by millions worldwide, it makes business simpler. Learn more at squareup.com.
Clearpay changes the way we pay. Clearpay enables simple, transparent, and responsible spending. It is on a mission to create an economy in which everyone wins. Learn more at clearpay.co.uk.
Bitkey is the bitcoin self-custody wallet that gives people full control of their money. It’s designed to make bitcoin ownership safer and easier. Learn more at bitkey.world.
Tidal is a music platform built by artists to help creators grow their careers, connect with fans, and share their work globally. Lean more at tidal.com.
Executive Summary
1. The New Economic Reality
People across the UK are adapting to a new economic reality. As the cost of living continues to squeeze household budgets, many are turning away from traditional finance and towards new, digital alternatives; using tools like BNPL to make flexible payments and exploring cryptocurrency as part of a more independent financial future.
of UK adults say the cost of living crisis and inflation is one of the most important issues facing the UK, ranking as their number one concern.
of UK adults have used BNPL services within the last year. 42% of those who’ve used it say it makes it easier to buy what they need.
to own cryptocurrency by 2035
We estimate that nearly a third of the population could own some form of cryptocurrency by 2035. Among 25-34 year olds in the UK, cryptocurrency is more popular as a savings vehicle than cash ISAs (28% vs 24%).
2. Fintech at Work
For too many small businesses, traditional finance no longer works. Slow decisions, rigid criteria and outdated systems hold back firms that are ready to grow. A new generation of digital finance tools is changing that; giving entrepreneurs faster access to funding, simpler ways to manage money and the confidence to invest in their future.
Every year, around 50,000 “viable” SMEs with low default rates are denied the capital they need. This costs the economy nearly £4 billion annually. If we turned this around SMEs could unlock £7.4 billion in new growth.
If an extra 1% of SMEs boosted their productivity to the point where revenues grow faster than headcount, £24.6 billion could be added to the economy every year. Better access to finance and fintech can help SMEs get there.
of businesses using Square said it had helped them make more sales and 36% said it allowed them to reach more customers.
3. The Next Wave of Entrepreneurs
A new wave of entrepreneurs is reshaping Britain’s economy for the digital age. Young people are combining creativity with technology by turning side hustles into full-time ventures and using digital tools to start, sell and scale. From flexible payments to crypto wallets, this generation is building businesses that reflect how they live; online, agile and open to the world.
10% of UK adults want to start a business in the next year. If all of these people were to do so, the number of businesses operating in the UK would almost double.
of UK adults with a side hustle say that better access to finance would help them take the next step and make it their full time job, and 30% want better access to digital tools.
of young people have a side hustle
Nearly 2 in 5 (38%) 18-34 year olds in the UK have already started their own business or side hustle – that’s equivalent to almost 6 million people.
The New Economic Reality
How consumers are adapting to a changing economy
The cost of living crisis continues
While headlines have moved on, cost of living pressures remain at the heart of public concern. The combined effects of the pandemic, a surge in inflation, and two decades of sluggish wage growth have left many households feeling permanently stretched. Even with inflation down from its peak, insecurity remains embedded in how people think about their finances; shaping spending, saving and investment decisions, and fuelling wider concern about the country’s economic future.
of UK adults are pessimistic about the state of the UK economy over the next 12 months.
In comparison, one third of UK adults are pessimistic about their personal financial situation over the next 12 months.
Which do you think are the most important issues facing the country at this time?
In a tough economy, flexible payments are crucial
BNPL has become a more useful financial tool than ever, allowing people to spread payments without relying on interest bearing or costlier forms of credit. 32% of UK adults who have used BNPL say they would have used another form of loan to make the purchase if they hadn’t used BNPL. These services offer flexibility, ease and interest-free borrowing, making everyday purchases more manageable. Awareness is now near universal, with 92% of the public having heard of BNPL and more than 1 in 3 (37%) using it in the past year.
Uptake is particularly concentrated among younger people, looking for new financial tools to help them manage their money. Almost half (48%) of Gen Z and young Millennials use BNPL at least once a month, making it a routine part of how these generations manage spending.
of UK adults who have heard of BNPL said it made it easier for them to buy what they need.
of UK adults who have used BNPL have used it to manage their monthly cash flow.
Flexible payments unlock growth
BNPL doesn’t just help consumers, it boosts the wider economy too. By making it easier for shoppers to spread costs interest-free, BNPL helps retailers convert more sales and reach new customers. In our survey, we found that 36% of people who had used BNPL wouldn’t have made the same purchase at the time if they didn’t have access to it.
For many businesses, particularly online and in retail, BNPL has become a core driver of growth, unlocking spending power at a time when household budgets are under pressure.
of businesses using Clearpay said it helped them to make sales.
of businesses using Clearpay said it allowed them to reach more customers.
In 2024, BNPL services enabled an additional £6.6 billion of sales revenue for UK merchants.
The UK’s comfort economy is resilient, even during downturns
Consumer spending trends in surprising directions in times of economic downturns. While inflation-adjusted spending on essential items like food, electricity and gas fall, people increase their spending on ‘small luxuries’ – items like skincare, travel, hotels and specialty coffees, that are outside everyday budgets but don’t break the bank.
During the economic slowdown that followed the financial crisis of 2008 and the most recent cost of living crisis, these spending patterns have remained consistent. From lattes to lipstick, Britain’s comfort economy is booming — a £56.5 billion reminder that even in hard times, people still find small ways to treat themselves.
Against a backdrop of lower disposable incomes, higher unemployment and soaring inflation during the cost living crisis (mid 2022 to early 2025), small luxury spending increased by 6%.
per person
Together, these shifts add up to £56.5 billion in spending on ‘small luxuries’ — around £1,000 per person over the same time frame — as consumers seek small moments of comfort amid financial pressure.
Changes in real terms spending
Zatu Games
Agile Growth Through Clearpay
Zatu Games is the UK's biggest independent games retailer, shipping to more than 150 countries.
“When Simon, our owner, couldn’t find a game he wanted, he started a board game company. What began as a passion project — to stock every game possible — has grown rapidly since 2016. Without a high street presence, we’ve built brand equity through logistics, marketplace strategy, and a committed team of content creators, supported by constant forward planning.
We introduced Clearpay after the pandemic to give customers more flexibility, and it’s been a game changer for both us and them. The ‘pay in four’ model makes higher-value purchases more manageable for shoppers, especially around Christmas; turning deluxe or collector’s editions into something they can buy now rather than save up for. For us, it’s driven bigger basket sizes and supported growth during peak periods. In general, board games are a more cost-effective way of providing family fun than most activities or excursions, and having Clearpay only helps those who might be struggling to bring in some extra fun during tough economic times.”
Arthur Blazey
Programme Manager, Zatu Games
Furniturebox
From Flat-Pack to Fast Growth
Furniturebox is a UK-based online furniture retailer specialising in modern, on-trend designs, rapid delivery, and strong customer service.
Furniturebox started when Monty, then 17, realised most furniture took weeks to arrive and thought, “This is mental.” If he could get it into a box of the right size, he could get it to customers the next day. He and Dan launched on eBay while still at school, hit £1 million in their first year, and never looked back. That early focus on logistics and service; next-day delivery, free returns and strong customer service, remains the foundation of the business.
Clearpay has become a key part of making our products more accessible. Traditional finance options were clunky and put customers off; BNPL fits how people actually shop. Average order values and conversion rates are higher with Clearpay. Most importantly its helped us build trust in a still-growing brand. As Furniturebox expands into higher-value items like sofas and garden furniture, Clearpay gives customers more flexibility and reduces upfront risk, supporting both growth and customer confidence.
Kayla Wilson
Marketing Director, Furniturebox
Cryptocurrency: the future of personal finance
Cryptocurrencies have moved from the fringes of finance and become a mainstream part of younger people’s savings strategies. For many under-35s, digital assets represent both a hedge against economic uncertainty and an opportunity for growth. According to our survey more 25-34 year olds have used cryptocurrency to save money and invest than a cash ISA. We estimate that nearly a third of UK adults could own some form of cryptocurrency by 2035, pushing the total market value from £12 billion today to £42.2 billion. This would almost triple the share of household wealth held in these assets. For this generation, digital money is not a passing fad but an increasingly normal part of financial planning.
of UK adults aged 25-34 said they were likely to include cryptocurrency in their savings strategy over the next five years.
Cryptocurrency Adoption - Projection to 2035 (Medium with Range)
Securing investments through crypto wallets
As cryptocurrency adoption grows, security has become one of the biggest barriers to wider use. Many people are attracted by the promise of control and privacy but fear losing access to their funds. More than 1 in 5 (22%) say they worry about losing their wallet or funds. Crypto wallets allow users to securely access their cryptocurrency, whilst maintaining the right to self-custody and control over their investments. Users value the control, ease of access and privacy that these wallets provide.
More than a quarter of 25-34 year olds in the UK have used a crypto wallet to store value or savings.
What features of crypto wallets do you enjoy or find useful, if any?
Owning the Future
Bitcoin’s Rise and What Comes Next
Jordan Walker is the founder of the Bitcoin Collective, a UK-based company helping businesses understand and adopt Bitcoin.
Bitcoin hasn’t actually changed, it’s people’s understanding that has evolved. Over the past five years, we’ve seen a tipping point. More businesses are accepting it, more people are learning about it, and adoption is accelerating.
With bitcoin, you move from having no responsibility for your money to full responsibility and that’s a big shift. If you lose your seed phrase, your wealth is gone. That’s why I’ve supported Bitkey from the start. It uses multi-signature technology to make self-custody less intimidating, removing that single point of failure. For my friends and family, it’s been a game changer; it makes owning bitcoin less scary and opens the door for ordinary people to get involved.
The opportunity for bitcoin in the UK is huge. If we embrace it — through education, better regulation and a more open attitude — we can stay competitive. If not, we risk losing investment and talent to countries that do. Businesses need to think ahead; the companies that embrace Bitcoin now will be the ones that thrive in the next decade.
Jordan Walker
Founder, Bitcoin Collective
StepChange
Supporting people to gain control of their finances
“Our partnership with Clearpay helps to ensure customers facing financial difficulty can access free, impartial debt advice. Through their hardship policy and customer support channels, Clearpay signposts individuals to StepChange services, encouraging early intervention that makes a real difference. Together, we support people in accessing the help they need to regain control of their finances.”
Sara Dias-Foster
Business Development Manager, StepChange
Fintech at Work
How businesses can thrive in a digital age
Businesses are under pressure
Businesses operate in the same economic climate as consumers and they’re feeling the pinch. 42% of businesses in our poll were pessimistic about the state of the UK economy over the next 12 months. Rising costs, tighter margins and subdued demand have left many firms struggling to stay ahead. For small and medium-sized enterprises, two challenges stand out above all others.
Accessing Finance
Even successful businesses are finding it hard to get the funding they need to grow. Tens of thousands of viable firms are locked out of mainstream credit each year. Traditional lenders remain slow, risk-averse and inflexible, leaving many business owners reliant on savings, credit cards or alternative lenders just to manage cash flow.
Keeping up with consumers
Consumers are shopping differently; more digitally, more flexibly, and with higher expectations for convenience. Businesses that can’t adapt risk being left behind. Yet many SMEs lack the resources to invest in the digital tools — from contactless payments to online retail and BNPL integration — that help them meet customer demand. For too many, the digital shift feels like another cost they can’t afford rather than an opportunity to grow.
Too many SMEs struggle to access the finance they need
Britain’s small businesses face a tougher financing environment than their European peers. The UK has the highest SME loan rejection rate in Western Europe, leaving tens of thousands of credit-worthy firms locked out of mainstream finance. Every year, around 50,000 “viable” SMEs with low default rates are denied the capital they need, costing the economy nearly £4 billion in lost GVA. This high rejection rate often means SMEs have a negative relationship with traditional financial institutions.
of Square businesses say they would be unlikely to consider a bank loan from a high street bank or business loan from another lender as a source of finance for their business in the future.
More than one third of Square businesses think loans and grants (from major high street banks or government institutions) are inaccessible to their business.
Just 8% of Square businesses say they completely trust retail banks.
Flexible finance solutions are key to unlocking growth
The economic opportunity of unlocking finance for SMEs who are routinely rejected is vast; meeting their financing needs could unlock up to £7.4 billion for the UK economy every year. Fixing Britain’s SME finance gap is not just a banking issue – it’s a growth imperative.
of businesses who had accessed finance through Square said their experience was better than other sources of finance.
Number of viable SMEs
Digital payment systems are making businesses more efficient
Digital payment systems are quietly transforming how British businesses operate. Tools like Square are cutting transaction costs, speeding up payments and improving cash flow, giving firms more control over their finances. A growing share of businesses now use digital payments as their default, helping to modernise the UK’s payment infrastructure and bring small firms closer to the operational efficiency of larger competitors. 66% of businesses using Square said it had helped them to run their business more efficiently.
of businesses using Square say increased availability of digital payment tools has had a positive impact on their business.
What would you say have been the main benefits to your business of using Square?
Keeping the high street alive
Britain’s high streets are under pressure. In 2024, 35 stores closed down every day on British high streets.1 47% of UK adults are pessimistic about the future of their high street and 75% cite the number of shops and businesses opening or closing down as the reason for this pessimism.
Restoring local communities and high streets is a key priority for the Government. The Pride in Place Strategy will invest £5bn in 339 communities to help rejuvenate local high streets, parks and community spaces. Alongside this, Government can also help leverage Britain’s entrepreneurial spirit to help restore local pride. Better access to finance and improved support for entrepreneurs can help both existing businesses and potential new entrepreneurs bring their ventures to the local high street, helping to restore pride in local communities.
11% of businesses using Square said that opening new stores was one of their top three priorities for the next year.
of UK adults who are optimistic about their local high street, cited the types of businesses opening and closing as one of the main reasons for this.
of Square businesses who were pessimistic about their local high street cited the level of investment as one of the main reasons for this.
Lannan Bakery
Viral Success Meets Smart Support
Lannan Bakery is an Edinburgh-based bakery founded by Darcie Maher and Chloe Black, known for its traditional techniques and simple, nostalgic bakes.
In my mind, I was just going to be making a very small amount of pastry, serving it myself and getting to know the locals. Then we went viral. The demand has been relentless, we shot through our five-year plan in six months. Social media has been a huge part of that story; videos of our pastries have gone viral, queues form down the street, and people travel from across the country to visit us.
Square has made it so much easier to keep up with the demand. We used to have a system that crashed all the time — now we can just say, ‘Add a button for this new drink,’ and it’s there. It’s intuitive, and it works. We actually have someone we can speak to at Square. If something breaks, it gets fixed quickly. It’s supportive in a way the banks just haven’t been.”
Darcie Maher
Owner, Lannan Bakery
Jayke Mangion
Independence, Growth & Smart Finance
Jayke Mangion is the founder of JMHG, a collection of cafés, bars and restaurants across South West London inspired by Melbourne’s food and coffee culture.
“I’ve been working for myself for the past 15 years. I started out in advertising and marketing in Melbourne, but I always wanted to build something of my own — to be an independent owner-operator, not backed by investors or private equity. When we started, and were doing grilled banana breads and flat whites, people didn’t know what they were. We built the business from a £15k car loan and a few credit cards, and now we’ve got about 10 venues and 100 staff. It’s not about getting rich quick, it’s about creating something you’re proud of, and doing it on your own terms.
Square gives you instant capital, three clicks and the money’s there. I’ve had maybe five or six Square loans over the past few years, around £300–400k in total, always in smaller, manageable amounts tied to cash flow. When our energy bills quadrupled overnight, that access to funding kept one of the businesses open. Traditional banks would have taken weeks and wanted collateral and still not guaranteed; Square trusted our trading history. It’s finance that actually understands how a modern business works; flexible, fast and built around how we trade day to day.”
Jayke Mangion
Founder, JMHG
Gaya Bakery
Boutique Baking in a Changing Economy
Gaya Bakery is an independent high-end bakery, which started as an online only business and has since expanded with a physical store in South West London.
“I began baking as a hobby and creative outlet while working in finance and this quickly evolved into a full-time business as commissions for special occasion cakes grew. Today, customers can order a range of products from us – everything from our in-store pastries, as well as desserts and larger celebration cakes. Our online store has been instrumental in that growth. It allows customers to browse our full range, place orders with ease, and gain a sense of what defines our work – boutique, made-to-order cakes that combine exquisite flavour with refined, elegant design.
Earlier this year, we partnered with Clearpay, which felt like a natural fit for our online business. Our products range from £18 brownies to £145 celebration cakes as well as fully bespoke creations for special occasions. They’re luxuries, and we recognise that many customers are being more mindful of their spending. By offering Clearpay, we enable them to enjoy our products while spreading the cost in a way that suits their budget. What has been particularly interesting is how widely this option is used across all types of customers, reflecting the growing demand for flexibility in how people choose to pay. Over time, I expect this partnership will help us reach an even broader audience, particularly those commissioning bespoke cakes for weddings and major celebrations.
Running a physical shop brings a different set of challenges, but I remain a firm believer in the value of in-person retail. There’s a distinct charm in customers stepping through our doors – seeing the cakes up close, breathing in the delicious aromas of freshly-baked pastries, and connecting with us in person – an experience no online platform can ever replace.”
Gaya Vara
Owner, Gaya Bakery
Businesses using Block’s tools are innovating and growing
Despite tough economic conditions, businesses using Block’s tools are finding ways to grow. While some firms have struggled to adapt, those powered by Block’s products are significantly more dynamic and forward-looking. We found that they are three times more likely to have introduced a new innovation (new or significantly improved products, services or processes) in the past three years than the UK average. This culture of experimentation pays off; innovation-focused firms consistently see faster revenue growth and higher productivity.
The best performing SMEs see their revenues grow faster than headcount. If just an additional 1% of SMEs performed like this, it would contribute an additional £24.6 billion to the UK economy each year.
Digital tools are transforming the UK music industry
Digital tools are reshaping entire industries – opening doors that once seemed closed to newcomers. Nowhere is this clearer than in music, where streaming platforms are helping independent artists build global audiences, earn fairer pay, and grow sustainable careers. What once required a label, studio, or gatekeeper can now be done from a laptop or phone.
of UK adults use an online streaming service to listen to music.2
of 25-34 year olds value having high quality audio options when streaming music.
Kit Rice
A New Era for Independent Artists
Brighton-based artist, songwriter and educator, Kit Rice, has built a career rooted in creativity and community, helping shape the next generation of independent talent.
“I’ve always been surrounded by music – I started playing the violin when I was four. As my career has grown as a songwriter and artist, I’ve had festival slots, radio plays, and I now run songwriting camps to help other independent artists. The music industry has never been more accessible for independent artists as it is today. New platforms mean that anyone can put out music and connect with fans in new ways – you can build a career from your phone.
When you’re an independent artist, being treated like a partner, not just a profile makes all the difference and the streaming platform Tidal does just that. Tidal stands out because it actually gets how the creative economy works. It displays the full credits on every track for the world to see, they have fairer pay and real opportunities, not just visibility. Tidal is designed to help artists build their careers – it’s investing in the entire ecosystem. Independent artists thrive through collaboration, and by backing songwriting camps and spaces that foster that partnership, Tidal is helping build the infrastructure for the next generation. Independent artists are the future and platforms like Tidal are key partners in that growth.”
Kit Rice
Music Artist
ART Business Loans
Driving SME growth in the West Midlands
“As a community development finance institution (CDFI), our mission at ART Business Loans is to help alleviate poverty through enterprise by facilitating loans for local businesses; our loan sizes are typically between £10,000 and £250,000, and over 75% of the entrepreneurs we support are from underserved and disadvantaged communities, including those led by women and ethnic minorities.
Block supported our work through a unique partnership with Unity Trust Bank in 2022, which enabled us to deploy £4m in lending to small businesses in the West Midlands who were not approved for loans by traditional banks. Block’s mission of economic empowerment for all really aligns with our work, and we are proud of the support we were able to provide through this partnership to help local SMEs scale and thrive.”
Dr Steve Walker
CEO, ART Business Loans
The Next Wave of Entrepreneurs
Digital entrepreneurs are reshaping Britain’s economic story
The future of entrepreneurship
Britain is on the cusp of an entrepreneurial boom. Across the country, millions of young people are turning creativity into commerce; building side hustles, launching digital businesses, and using new tools to sell, scale and succeed. This represents one of the biggest economic opportunities of the next decade; even modest growth among this cohort could transform jobs, innovation and national prosperity.
10% of UK adults want to start a business in the next year. If all of these people were to do so, the number of businesses operating in the UK would almost double.
of 18-34 year olds in the UK have started their own business or side hustle, that’s equivalent to almost 6 million people.
of UK adults aged 18-34 are interested in or considering starting a business themselves.
What makes an entrepreneur?
Aspiring entrepreneurs think differently from the average consumer. They’re more optimistic about their future and more confident in their ability to shape it. They share key traits with successful Block businesses: optimistic, proactive, and opportunity-driven. This entrepreneurial mindset is the foundation of Britain’s next wave of growth.
Net agreement with statements (agree minus disagree)
Backing the business builders
Britain’s entrepreneurial ambition represents a major opportunity, but too often, side hustles stall before they scale. The barriers are clear: limited access to finance, lack of digital tools, and unclear guidance. Removing these obstacles is essential to unlocking the next generation of British businesses.
When we asked UK adults with a side hustle what would help them take the next step and make it their full time job:
said better access to finance.
said better tools or technology (e.g. payment systems, website, software).
said clearer legal or tax guidance.
Smart Works
Supporting women to gain employment and achieve their financial goals
Smart Works is a UK based charity that provides women with professional clothing and coaching to help them succeed at job interviews and secure meaningful employment.
Smart Works has been proud to partner with Block for the past three years. This partnership has been instrumental in supporting thousands of women on their journey into employment, a mission that has never been more important given the growing challenges women face in the current job market.
With Block’s support, we reached a significant milestone of delivering our service to over 10,000 women per year. This achievement would not have been possible without the commitment and enthusiasm of our corporate partners.
Beyond financial support, Block has engaged meaningfully across many areas of our work. From hosting and supporting our events, to providing direct mentoring and skills development opportunities for the women we serve, Block has shown a deep commitment to helping women unlock their potential. In addition, their employees have generously contributed their time through volunteering and fundraising.
We are delighted to have a partner like Block, whose vision and values align so closely with our own. The impact we’ve achieved together demonstrates the power of our partnership. At Smart Works, we know we can only support women across the UK with the help of committed, like-minded organisations, and Block is a shining example of that commitment in action. We are immensely grateful for their generous and visionary support.
Anna Hemmings
CEO, Smart Works
Unlocking
Entrepreneurial Growth
Helping Britain’s entrepreneurs succeed
The UK economy stands at a crossroads. From BNPL and mobile payments to cryptocurrency and fintech-powered lending, a new generation of consumers and entrepreneurs is embracing digital finance and reshaping how money moves through the economy. Businesses are adapting fast, but public policy hasn’t kept pace. To unlock the next wave of growth, the government must support the new generation of entrepreneurs. Our research recommends four actions:
Pioneer intelligent, inclusive finance for UK businesses
Leverage technology adoption and data sharing among small businesses to increase access to fast, flexible funding. By basing lending on businesses’ real trading history, we can improve access to finance rather than relying on outdated credit rules that are no longer fit for the modern British economy.
Future-proof digital wealth
Accelerate the implementation of regulatory frameworks to support new forms of digital money, helping people invest with confidence, and avoid the costs associated with scams or loss of access.
Support BNPL use as a responsible, flexible payment tool
British consumers see BNPL as a responsible and flexible payment tool that helps them manage their money better. This can be supported by a regulatory framework that requires proportionate affordability checks, clear product information and accountability — allowing consumers to benefit from strong industry-wide protections.
Update business support for the next generation of entrepreneurs
A simpler and more complete system of business guidance can better support aspiring business owners. Clearer signposting to modern lending options such as Square Loans and other fintech-based tools can help more side hustlers become full-time business owners, helping create the next generation of British entrepreneurs.
About this research:
Public First designed and conducted an online survey of 2,053 UK adults between 15th and 25th August 2025. The survey was conducted via online survey panels. Quotas and weighting were used to ensure the sample was representative of the UK adult population based on age and gender group, region, and socio-economic grade. Surveys were self-completed.
Public First designed a questionnaire to be sent to businesses using Square or Clearpay via the relevant Block databases. 813 responses were received from the Square database which was used as the base for statistics referring to Square businesses. Clearpay businesses refers to a sample combining the 21 responses from the Clearpay database, 37 respondents from the Square database who also use Clearpay, and 42 respondents accessed via survey panels who had to be businesses using Clearpay to qualify. Surveys were self-completed.
Economic modelling:
Additional revenue from BNPL services:
To estimate the additional revenue generated by BNPL services for merchants, we used empirical evidence to back out the increase in basket size attributable to BNPL services, combined that with our polling estimates on the share of transactions that would not have happened without BNPL services, and applied this combined share to the current value of BNPL transactions to estimate additionality.
“Comfort economy” spending in economic downturns:
We conducted novel analysis on historic consumer spending data, categorised items into small luxuries and essential items based on ONS classifications of essential commodities and empirical observations on the nature of consumption during economic downturns. We then calculated the real-terms change in spending during economic downturns, controlling for factors like unemployment rates and changes to household disposable income to isolate the impact of mood-boosting spending during economic downturns.
Future value of crypto:
We used the Financial Conduct Authority’s historic data on average values of crypto asset values and ownership rates as the basis for this modelling. Using adoption rates over the last five years, we charted a crypto technology adoption S curve and used external estimates for the future value of crypto to approximate three realistic scenarios for maximum adoption. We then used data from the ONS Wealth and Assets Survey to map the changing nature of crypto as a share of all household wealth.
Productivity benefits if SMEs had better access to finance:
We estimated the size of the SME population that are creditworthy and yet still get rejected from loans from mainstream financial institutions (like a high street bank). We then applied average SME loan application amounts to this pool to size the magnitude of finance they sought. And using British Business Bank estimates of productivity returns to SME loans, we calculated the productivity benefits that would have accrued had this viable SME pool succeeded in accessing the finance they were after.
Productivity benefits if SMEs increased their turnover faster than their headcount:
Using the Enterprise Research Centre’s categorisation of “productivity heroes”, we calculated the number of SMEs that currently grow their turnover at a faster rate than their headcount. Using their corresponding turnover uplift, we then calculated the GVA gains resulting from that additional turnover.