For many, the new year is a time to celebrate leaving the stress of our past behind – kickstarting a number of resolutions designed to spark a sense of optimism in the months ahead.

But that sense of hopefulness can only last for so long when the dreaded sense of reality soon finds its way back to us. Alas, it might have already for some, and especially in the world of business.

The nation’s entrepreneurs have, without a doubt, been put to the test over the past few years.

Brexit-imposed regulatory hurdles, pandemic-induced cost pressures, political instability and an overall sluggish economy, the seemingly never-ending list continues.

Naturally, the start-up community found itself hoping for more in 2024. But unfortunately, with the latest post-Budget jitters dominating the headlines, some of that hope was lost.

The sense of certainty Britain was longing for was far, far from achieved.

So, will the year 2025 be one for start-ups to finally thrive? Or will they once again find themselves struggling to survive?

A recent Federation of Small Businesses (FSB) survey found an alarming number of businesses have becoming increasingly concerned baout the future of the UK’s workforce under the new Labour government’s employment reforms.

Labour’s employment overhaul was laid out in October with 28 individual measures in the Bill, including ending exploitative zero-hour contracts and banning fire and rehire tactics.

Of the 1,270 small employers surveyed, 67 per cent had said they plan to halt recruitment efforts in fear of these changes, with 32 per cent planning to reduce current headcount as well.

Over half of those employers also said they feel the need to cancel or scale back investment on expansion plans due to the looming cost pressures that could follow.

These worries don’t even begin to paint the bigger picture. Needless to say, the Autumn Budget was not a start-up’s best friend.

There will be a long road ahead for those looking to avoid collapse under the heavy weight of tax hikes, including the implications of a rise in employers’ National Insurance Contributions (NICs), minimum wage allowance, Business Property Relief (BPR) and business rates.

Joanna Jensen, serial entrepreneur and founder of family skincare brand Childs Farm, is one of many who believe the nation must “grease the wheels of business again”.

A start-up’s recipe for survival under these kinds of pressures, she says, will come down to whether the founder is resilient and ambitious enough to succeed.

“If you are following a strategy that’s not working, don’t be afraid to pivot and try something different,” Jensen adds.

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