Silver-Linings Start-Ups: One in 10 UK small businesses started by entrepreneurs after job loss

LONDON, Oct. 15, 2025 /PRNewswire/ -- As the UK's unemployment rate once again rises¹, plucky and resilient Brits are transforming into 'Silver-Lining Start-Ups' — rising from redundancy to launch new ventures, according to new GoDaddy research. Figures reveal that one in ten small businesses launched since the start of 2024 were created by someone who had recently been laid off, as people turn setbacks into start-ups.

The data is from the GoDaddy Small Business Research Lab, an international research initiative that studies the economic impact of small businesses, including more than 600,000 in the UK, as well as the behaviors and mindsets of the owners that start and run them.

GoDaddy's research reveals a striking optimism gap between the UK's newest entrepreneurs—those who founded their businesses in the last 18 months—and more established small business owners who have been operating for two years or longer. Nearly two thirds (63%) of these recent founders expect their turnover to increase before the year's end, compared to just 40% of their longer-standing peers.

Furthermore, recently founded companies (those launched in the last 18 months) are significantly more likely to hire staff. The majority (66%) plan to bring more employees on board before the end of the year, compared to just 17% on the national average.

New start-up founders are more likely to be male and middle-aged

Almost two-thirds (63%) of small firms founded in the last 18 months were launched by men, compared to 52% of the UK's small business population overall. Meanwhile, a third (33%) were founded by people born in the 1970s – now aged between 45 and 55 – compared to the national average of 27%.

Other notable differences between small businesses created in 2024 or 2025 and the national picture include:

• Higher likelihood to be in the IT/managed services vertical - 10% vs 4%
• Higher confidence in the UK economy as a whole - 19% vs 14%
• Higher likelihood to sell products primarily online via a website - 38% vs 30%

Commenting on the findings, small business owner Oliver Calque, owner of Purpose Built  films  said, "Purpose Built Films really grew out of a challenging transition for me. After years in wildlife filmmaking, cutbacks across the UK television industry meant I found myself needing to rethink how I worked and what I could offer. Running a business meant learning everything from outreach and budgeting to post-production – a steep curve, but one that's been worth it. Starting over at any stage in your career can feel daunting, but what kept me going was the belief that businesses are sitting on untold stories that can inspire real change. For me, that's what being an entrepreneur is all about - turning uncertainty into opportunity and building something with purpose from the ground up."

Starting a business easier than ever in the age of AI

The emergence of Silver-Linings Start-Ups has been made easier by falling business set-up costs and the rise of AI.

GoDaddy's research shows that a quarter (25%) of businesses started since January 2024 were created with under £500 of start-up capital, compared to 18% across all small businesses. Meanwhile, 51% of recent founders have harnessed AI for business use, compared to 35% on a broader scale.

Alexandra Rosen, Global Head of the GoDaddy Small Business Research Lab said: "Despite a turbulent and challenging economy over the last two years, we're seeing a prevailing trend of UK entrepreneurs turning professional setbacks into small business start-up opportunities that are also personally fulfilling."

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About GoDaddy  

GoDaddy helps millions of entrepreneurs globally start and scale their businesses. People come to GoDaddy to name their idea, build a website and logo, sell their products and services, and accept payments. GoDaddy Airo®, the company's AI-powered experience, makes growing a small business faster and easier by enabling them to get their idea online in minutes, drive traffic and boost sales. GoDaddy's expert guides are available 24/7 to provide assistance. To learn more about the company, visit www.GoDaddy.com  

About GoDaddy Small Business Research Lab

GoDaddy Small Business Research Lab is a multi-year research initiative that analyses data from microbusinesses – including over 600,000 in the UK - to quantify the impact of 'the smallest of small businesses' on the economy and local communities. 

The most recent survey was conducted on behalf of GoDaddy, among 2,000+ small business owners, by Advanis in May 2025.

* The UK's unemployment rate Is currently at 4.7%, the highest rate since April-June 2021. Source: www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/unemployment/timeseries/mgsx/lms

¹ https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/october2025

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