More than a third of UK business owners fell into entrepreneurship

A study of 1,000 business owners by Santander UK found 35% had not planned to run a business, while 62% had no previous business experience when they started out.

The most common reason for taking the plunge was a need for more flexibility (34%), followed by a desire for financial independence (25%).

One in five (21%) started a business after being out of work or made redundant, while the same proportion wanted to turn a side hustle into a full-time venture.

But the move into business often comes with a steep learning curve. Nearly four in five owners (79%) said they learned almost everything on the job, while 39% did not understand the basics of running a business when they started.

Six in 10 found running their business harder than expected, and the same proportion said day-to-day tasks became more complex as their business grew.

The research comes as Santander UK announces the winners of its 2026 Santander X UK Awards, which offer finalists a share of £150,000 in equity-free funding.

Puja Patel, Head of Strategic Programmes and Universities at Santander UK, said: “Our research shows that the UK is a nation of innovators and entrepreneurs, with more than a third of business owners describing themselves as ‘accidental entrepreneurs’ who never planned to start their own business.

“Whatever their route into entrepreneurship, having the right support, skills and connections can make a crucial difference.”

The study also found 81% of owners value having someone to talk to when facing complex business situations, while 83% value human guidance over relying solely on digital tools.

Nearly three-quarters (71%) wish they had more tools and support to help their business grow. Networking with other businesses, managing cash flow and planning for long-term growth were each named by 31% of respondents.

The winners of this year’s Santander X UK Awards were:

University – Olimera Therapeutics, a biotechnology company developing antibody technology targeting diseases including Parkinson’s.

Startup – Peripear Ltd, which has designed a wearable device to minimise tears during childbirth.

SME – Think for the Future, which runs inclusion centres in schools to improve behaviour, resilience and engagement in learning.

Puja Patel added: “Through the Santander X programme, growing start-ups and SMEs can build their confidence, develop their skills, expand their networks and compete for vital equity-free funding.”