Low financial confidence is ‘locking the door’ on British entrepreneurial ambition

London – 13 January 2026 – A critical chasm in financial confidence is preventing Britain’s small businesses from growing or even starting up at all, according to Xero’s newly formed Financial Confidence Taskforce. It is calling on the UK government for a radical rethink around financial literacy to open the door to entrepreneurship so it can be seen as an aspirational, viable career for everyone, regardless of background.

The financial confidence gap hinders growth

Nearly two in five (28%) small business owners surveyed said they are unaware if they were profitable last month and more than half (55%) struggle with cash flow management, according to Xero’s research. While more than one in four (28%) say they’re ‘not a numbers person’, this low confidence leads to missed opportunities, slower growth, and hesitation to seek investment.

Younger generations appear to be more disadvantaged with 35% of 18-34 year olds agreeing they do not have the financial skills to manage their business. There is a ‘real-world shock’ when entrepreneurial dreams meet administrative reality, with 29% of 18-34 year olds saying running their finances was more difficult than imagined, compared to 16% of those aged 55+.

“We’re a nation of small businesses, but not one that teaches people to be excited by entrepreneurship. Fear of figures can quickly turn people’s aspirations into what might feel like an impossible dream. We’re calling for a radical rethink of how to improve financial literacy and show people that running a business is an amazing and rewarding career. For everyone to have a fair chance at it, it starts with building financial confidence early and removing that fear. Unlocking this problem will unleash the economy,” said Kate Hayward, UK Managing Director at Xero.

A new approach: increase ambition, build knowledge and experience

The taskforce, formed of leaders from business, accountancy, and education, argues that while what is taught in schools is a good start, it cannot be the end of the conversation. To turn the tide, the UK must move beyond the classroom and ensure that people “want it, know it, and do it”. This is the taskforce’s recommended approach to rethinking how financial confidence is taught and learned:

1. ‘Want it’: make enterprise aspirational. Integrate business and personal finance into school curriculum and involve students in business decisions like uniform pricing and fundraising. Promote role models that reflect the rewarding journey of entrepreneurship, and highlight their contribution to society.
2. ‘Know it’: give people the confidence to understand and “unlock” their numbers. Encourage employers to drive early-career financial training. Assess financial confidence as part of annual reviews. Embed a business skills module into all apprenticeships. Leverage accountants and bookkeepers as financial business partners.
3. 'Do it’: turn confidence into capability through practice. Ensure real-world experience opportunities are offered in schools by both small and big businesses. Create a national badge that recognizes practical business experience and present it as a career asset that’s valued by employers.

In order for this approach to work, the taskforce is also calling for a more joined up government with one minister responsible for financial literacy, and a more simplified tax system in the UK.

Taskforce member and chartered accountant Grace Hardy said: "You can't be what you can't see. It’s critical for young people to see relatable role models who show that financial confidence is a skill anyone can unlock, not a barrier to entry. We need to normalise the conversation around finances and showcase founders who make entrepreneurship feel accessible to everyone.”

The Financial Confidence Taskforce consists of the following members:

Tara Askham – global finance trainer, published author, and an award-winning entrepreneur passionate about making finance accessible

Tim Barnes – small business advocate and CEO, Center for Entrepreneurs

Martin Bissett – entrepreneur, business advisor and author

Grace Hardy – chartered accountant and lobbyist for financial literacy in schools

Sarah Porretta – CEO, Young Enterprise, supporting social mobility and financial education

Graeme Tennick – founder of Tennick Accountants and member of the Xero Partner Advisory Council

Zoe Whitman – co-founder, Six Figure Bookkeepers

Philip Salter – founder, The Entrepreneurs Network

Kate Hayward – UK Managing Director, Xero

The findings of the Financial Confidence Taskforce highlight that the path to a stronger economy requires us to unlock the capability and ambition of current and future entrepreneurs. The full report outlines key steps to embed financial confidence nationally, at all stages of a career in business.

Xero’s free online program, Unlock Your Numbers offers tools, educational resources and mentoring, to break down business basics. Xero is also part of The Maple Review – an independent, government-backed initiative spearheaded by Small Business Britain; it also partners with the King's Trust – both of which are focused on addressing the economic barriers to starting a business. Xero’s partnership with Small Business Britain extends to its Small & Mighty Enterprise Program, which has now helped 4,500 micro businesses across the UK to scale.

ENDS

Media Contact

Xero Communications UK | Sophie Whitney | ukpress@xero.com

About Xero

Xero is a global small business platform that helps customers supercharge their business by bringing together the most important small business tools, including accounting, payroll and payments — on one platform. Xero’s powerful platform helps customers automate routine tasks, get timely insights, and connects them with their data, their apps, and their accountant or bookkeeper so they can focus on what really matters. Trusted by millions of small businesses and accountants and bookkeepers globally, Xero makes life better for people in small business, their advisors, and communities around the world. For further information, please visit xero.com.