The UK’s solopreneur boom is growing — but AI skills are holding them back

The beginning of a new year means that many people are considering major life changes, and that includes starting a business.

But while the idea of a solopreneurship or a new venture sounds exciting at first, it’s much easier said than done.

A report by Intuit Quickbooks reveals a rise in ambition for self-employment and entrepreneurship in the UK. However, there are a couple of things holding these would-be solopreneurs back.

While money worries and fear of failure remain the main blockers to taking the leap into entrepreneurship, a growing lack of AI literacy is also emerging as another significant barrier.

The UK’s appetite for solopreneurship is growing fast

Entrepreneurship remains strong in the UK, and the ambition for people to ditch the traditional 9-5 in favour of the freelance life has been growing rapidly in the last year. 

As of 2025, there are 3.2 million sole proprietorships, and new research suggests that this number is likely to grow. According to the Entrepreneurship in 2026 report by Intuit Quickbooks, 33% of UK adults say they intend to start a business or side hustle in the next 12 months.

The report also reveals that increasing income is the largest motivator for inspiring entrepreneurs, with 52% of respondents wishing to build their wealth through starting a business. Other motivating factors included being your own boss (49%) and flexibility over working schedules (42%).

However, financial concerns and a lack of confidence were reported as the main barriers standing in the way of entrepreneurial ambition, with 40% of respondents citing not enough savings or startup capital as the reason they hadn’t created their own business. This was followed closely by the fear of failure for 38% of respondents.

Leigh Thomas, Vice President EMEA at Intuit, comments: “The ambition is there, but so is the anxiety. Britain is full of people who want to work for themselves, yet the cost-of-living makes that leap harder than ever.”

AI literacy is a hidden brake for aspiring solopreneurs

The lack of AI literacy has also emerged as a hidden yet growing barrier for aspiring solopreneurs.

This is reflected in the Government’s SME Digital Adoption Taskforce report from July 2025, which found that many SMEs still lack the confidence to adopt and use new digital and AI tools effectively.

Moreover, research reported by KPMG reveals that 73% of Brits have received no AI training or education. It also found that out of the 47 countries surveyed, the UK was placed at the bottom third for AI literacy and training.

And it’s this limited knowledge and expertise that’s responsible for the low rate of businesses adopting AI technology. A survey by the Institute of Directors found that half of respondents cited limited understanding of AI models and tools as a key barrier to adoption, alongside a lack of trust in AI-generated outcomes.

What’s more, the lack of AI adoption has been most persistent among sole traders and solopreneurs, according to research by Moneypenny. It revealed that 42% of sole traders have no intention of adopting AI, while another 31% are only using it sparingly.

How to master AI tools for entrepreneurship

For aspiring freelancers or solopreneurs that are new to using AI for business, the first thing to note is that not all AI tools are the same — some generate content, some automate workflows, some analyse data, and others optimise digital marketing.

When looking into the tools you want to use, you should first focus on the ones that solve your biggest business pain points, rather than trying to learn everything at once.

Next, learning by doing is essential. Start by choosing a small project (like automating social media posts or generating product ideas), experiment with different AI tools, and track what works and what doesn’t. It also helps to refine your prompts as you go along. Clear, specific, and goal-oriented instructions will give you better results. 

Finally, look at how your business runs day-to-day and spot where AI can save time or reduce effort. From there, you can build simple workflows that use both human judgment and AI assistance. 

Remember — you don’t have to be a fully-fledged AI expert to start as a solopreneur. Even small, practical uses of AI can make a big difference early on, helping you work more efficiently and grow your business rather than getting stuck in endless admin or workflow overwhelm.