Major universal bank HSBC has recently announced the closure of its Zing app just a year after its launch, potentially putting around 400 jobs at risk.

The Zing app, introduced in January 2024, was rolled out to take on fintech rivals like Revolut and Wise by offering cheaper cross-border payment fees.

However, its short-lived run suggests that big banks like HSBC are struggling to match the speed and innovation of tech-first disruptors.

What is the Zing app?

Zing is a digital mobile platform designed to offer lower fees for cross-border payments and aims to provide a more modern, user-friendly experience for customers handling international transactions.

However, the app struggled to gain traction in the marketplace from the start. According to data intelligence platform Apptopia, only 36,000 UK customers downloaded the app. This was a far cry from the likes of Revolut, which was downloaded over 15.6 million times in 2024 alone – making it the most downloaded neobank app in the UK.

Now, the bank has announced that it will be closing Zing just a year after its launch. While it didn’t disclose how many jobs would be lost as a result of the decision, it is speculated that 400 roles will be at risk.

In a statement, a spokesperson for HSBC said: “Following a strategic review of Zing within the HSBC Group and after careful consideration, we have made the decision to close Zing and integrate its underlying technology platform into HSBC,”

“HSBC is focused on increasing leadership and market shares in the areas where it has clear competitive advantage, and where it has the greatest opportunities to grow and support our clients.”

Why is Zing shutting down?

HSBC hasn’t provided a clear reason for Zing’s closure, but tough competition and lack of customer adoption are the likely culprits for its demise. 

Moreover, Ritesh Jain, former COO of HSBC, described the app as a “me-too product” in a Finextra blog post.

“Zing’s attempt to compete directly with Wise and Revolut was essentially a ‘me-too’ product, struggling to carve out a unique value proposition,” Jain wrote. “In a market where customers expect speed, transparency, and low-cost services, merely replicating existing offerings rarely works.”

Zing also faced a couple of compliance hurdles shortly after its launch, while its fintech competitors managed to navigate this through quick adaptation. Despite partnering with AI technology company Silent Eight to strengthen its compliance operations, HSBC still lagged behind in managing the fast-evolving rules.

Startups 100 fintechs leave traditional banks struggling to keep up

We’ve seen some incredible fintech businesses grace this year’s Startups 100 Index. This includes Atlantic Money – a platform designed to simplify international money transfers by offering a flat fee of £3 per transaction.

Unlike many competitors that charge percentage-based fees, Atlantic Money offers clear, predictable pricing, which makes it a great option for anyone wanting to avoid surprise charges.

Beyond international payments, our other impressive entrants include Yonder. Achieving third place in this year’s index – and set to rival Monzo – Yonder offers a rewards credit card where customers can earn points and redeem them for experiences, flights and dining options at popular restaurants.

With so many innovative fintechs shaking up the financial industry, it isn’t surprising that traditional banks are struggling to keep up. These startups are changing the game with fresh ideas, transparent pricing and user-friendly tech, pushing old-school banks to rethink their strategies to stay relevant in an increasingly competitive market.

With what feels like a tidal wave of job cuts, major retailers have been hitting the headlines with new workplace redundancies.

Morrisons has recently announced that it was slashing over 200 jobs from its retail people team, while Sainsbury’s is set to cut 3,000 roles by closing its hot food counters and cafes.

Clothing stores haven’t been safe either. Popular fashion chain River Island announced a redundancy programme at its London head office, while footwear retailer Schuh has launched its own redundancy and restructuring process. 

But while these cuts primarily target in-store or office roles, remote jobs have been less affected so far – potentially showing a gap in job security between traditional roles and those tied to the digital economy.

Why are Morrisons and Sainsbury’s axing more jobs?

Morrisons and Sainsbury’s latest job cuts come just a few months after axing hundreds of roles in 2024.

Morrisons announced that its latest wave of redundancies will be part of a cost-saving initiative, while Sainsbury’s says its decision was based on “simplifying the business”, adding that most shoppers “do not use the cafes regularly”. 

Meanwhile, River Island’s redundancies stem from its profit struggles, having reported a pre-tax loss of £32.2 million in October, as well as a 15% decline in sales. Schuh has also followed suit to try and navigate challenging economic conditions and rising costs.

However, the rise of National Insurance Contributions (NICs) for employers is likely a contributing factor as well, adding more pressure to already tight budgets. 

Last month, Morrisons CEO Rami Baitiéh called on the Labour government to stagger its “avalanche of costs” that businesses will face following the Autumn Budget announcement.

“The National Insurance change adds insult to injury. The problem is that it’s an avalanche of costs that is coming all at once,” Baitiéh commented. “So I have asked them, can we not defer some of it or go step by step, like a doctor would do – raising the dose with seven pills over seven days.”

Are remote teams at lower risk?

On the other hand, fully remote roles are reported to have a lower risk of redundancies compared to full-time office positions. 

According to research from the Startups 100 for 2025 survey, businesses that operate on a full-time office model had a 58% layoff rate – the highest out of any other work model. Meanwhile, remote-working businesses had a lower layoff rate of 45% and a higher level of operational streamlining. 

Only 33% of office-based businesses reported implementing streamlining operations to reduce costs, which could suggest that they face more financial pressures – such as business overhead costs associated with maintaining a physical space – thus leading to further redundancies.

Remote firms becoming less common

But despite research suggesting that remote positions are likely safer from job cuts, the number of fully remote jobs has declined significantly since the COVID-19 pandemic.

Amid the increasing number of companies enforcing return to office (RTO) mandates, many workers are finding it harder to secure fully remote roles. What’s more, our findings revealed that the number of fully remote businesses had halved within a year – declining from 32% to 16% from 2023 to 2024.

There are several reasons for this. First, many companies believe that returning to the office fosters better teamwork and creativity, while some leaders feel that in-person work is more productive or essential for maintaining company culture.

Additionally, leaders in certain industries are more sceptical about long term productivity. High-profile CEOs, for example, have argued that remote setups can lead to complacency or hinder innovation.

The rise of hybrid work models could be a contributing factor as well, particularly as 26% of businesses opted for this model in 2024 – a 44% increase from the previous year.

As job cuts continue to loom, it’s clear that the job market is going through changes. While remote roles appear to be safer from layoffs compared to office jobs, the rise of hybrid work and the push for people to return to the office are making things a little more uncertain.

Rising costs, like the increase in NICs, are forcing businesses to make tough decisions, including cutting staff and changing how they operate – making real job security difficult to find amid economic uncertainties.

We’re thrilled to announce the official launch of the 2025 Startups 100 Index! Our team of expert judges have hand-picked the fledging businesses we deemed to be the most unique, innovative, and set to explode onto the scene this year.

F&B, or food and beverage, is the business space that makes sure its customers are fed and watered. We’re all growing increasingly health-conscious, and 2025 is set to see a trend towards natural food with a focus on quality, as well as tailor-made ‘personalised nutrition’ and plant-based meat alternatives.

Consumers are growing more savvy about what they are getting from their food and they’re becoming more open to those that are bucking the trend. These Startups 100 winners are doing exactly that, and they’re set to disrupt the food and beverage industry in 2025, while whetting our appetites (both figuratively and literally that is):

Marketing Award Nominee

To recognise the startups that demonstrate the most creative and effective method for building early-stage brand awareness.

Startups 100: Marketing Award

What does the future hold for F&B?

The trends are clear: consumers want to know what goes into their food and drink, what it can do to benefit them, and know what they’re consuming is sustainable. Whether it’s Hoxton Farms meat-free fat, or SURREAL’s colourful but healthy cereal.

There’s a healthy appetite this year for startups meeting this consumer desire and disrupting the F&B industry with scientifically-backed, innovative methods to produce food that is good for the environment, good for our bodies, and good for our conscience. What are you waiting for?

If you want to venture beyond the F&B space and find out what other startups we think you need to know about, and which we crowned as the top spot, you can read the full list right now at the Startups 100 Index for 2025!

James Watt, founder of multinational brewery and pub chain BrewDog, is taking on Dragons’ Den by launching his own reality TV show.

With a mix of The X Factor, The Apprentice and Dragons’ Den, Watt’s’ new show – House of Unicorns – will see contestants compete with each other to win a £2 million cash prize for business investment.

BrewDog was one of the biggest Startups 100 success stories, starting from a small craft brewery in Scotland to a brand worth billions. 

Now, it’s hitting the TV screens with a new show, giving entrepreneurs the chance to take their business to the next level with Watt’s backing and life-changing investment.

Who is James Watt?

James Watt is the co-founder of BrewDog, which he launched in 2007 with his friend Martin Dickie. Since the beginning, the company’s mission has been to make people passionate about craft beer.

“We got fed up of drinking bland, watered down, rubbish beers,” Watt commented. “So we decided to make our own: they’re good quality, progressive and innovative.”

BrewDog has seen significant success since its inception and its feature on the Startups 100 Index. As of 2023, the company is worth around $2 million, exports its products to 60 countries and has opened 102 bars worldwide.

But despite its success, BrewDog and Watts himself have faced several controversies. The company came under fire in 2021 after staff described its organisational culture as toxic and accused Watt of creating a “culture of fear”.

More recently, Watt, who stepped down as CEO last year, was criticised for his questionable views on work-life balance.

On a now-deleted Instagram post, he wrote: “I think the whole concept of work-life balance was invented by people who hate the work that they do. If you love what you do, you don’t need work-life balance, you need work-life integration.”

What is House of Unicorns?

Now, Watt has teamed up with Whisper Productions to launch House of Unicorns. The show is set to challenge the long-running reality TV show Dragons’ Den, which has seen many successful businesses emerge, including Tangle Teezer, Levi Roots, Wonderbly and more.

Having been rejected twice to appear on Dragons’ Den, Watt’s House of Unicorns is set to be a “supercharged” version of the show.

The premise is that ten businesses will go head-to-head to compete for a £2 million investment over six weeks. Watts will invest £1 million of his own money to fund the winner, while viewers will be allowed to vote for which company will win additional funding of the same amount.

Whisper Productions are looking for a network to air the show, but will broadcast it on YouTube if they fail to get the show picked up.

Watt said that the inspiration for House of Unicorns stemmed from his personal frustrations with current business shows like Dragons’ Den and The Apprentice.

“I’ve always been so disillusioned and frankly, fed up with the tired format of reality TV business shows relying on worn-out tropes and stale stereotypes of entrepreneurs for comedy value, which are well past their sell-by date,” Watts said.

“We’re on a mission to double the amount of unicorns coming out of the UK and kickstart our economy. Over six weeks we will push some of the UK’s most exciting businesses and entrepreneurs to their limits and take them way outside their comfort zone.”

While there’s no set date yet, House of Unicorns is set to air later this year, but applications are now open on the show’s website. However, with our expertise in finding and promoting the most innovative businesses out there, Watts doesn’t need to look any further than our Startups 100 for 2025 Index.

Being a female founder is never an easy task. Amid problems like the UK’s current gender funding gap, alongside a lack of representation in C-suite roles, it’s no secret that the world of entrepreneurship is much tougher on women. 

Even in a sector like femtech, an industry supposedly tailored towards women’s health, women founders have struggled to break through. Controversially, the world’s biggest femtech startup was founded by, led by, and funded by men. That could be about to change.

Below, we’ll list the top UK femtech startups from this year’s Startups 100 Index. All are led by women CEOs who have turned frustration into inspiration. Together, they are working to redress the playing field for a female-led femtech future in 2025.

What will femtech look like in 2025?

Women founders face a lot more challenges compared to their male counterparts. However, these companies and their stories prove that there are spaces where female entrepreneurs are leading the way, particularly in the relatively new femtech industry.

The numbers don’t lie either. As of August 2024, there are 1.6 million female-owned businesses in the UK, a 76% increase compared to 2003. What’s more, the femtech market specifically is expected to hit $20 billion by 2030, while businesses generate approximately £700 million in estimated turnover with an annual growth rate of 30%.

Whether for helping underserved communities, tackling female health issues, or normalising uncomfortable topics in women’s health, every company on this list deserves to be recognised for its extraordinary dedication and commitment to improving the lives of women. 

Don’t forget – our Startups 100 Index for 2025 is full of promising businesses that are setting the stage for innovation in 2025.

This year, many of us are stopping drinking as part of the Dry January challenge, an alcohol-free campaign to promote the health benefits of going sober. But while consumers might be in better health this month, the UK’s pubs, bars, and clubs are reeling.

According to the CGA’s Daily Drinks Tracker, drinks sales dropped in the first full week of this month, as Brits leapt onto the Dry January trend. As reported by the Morning Advertiser, beverage sales were down by 9% compared to the same period in 2024.

This is not just an ethanol exodus, however. Analysis of the data shows that sales of soft drinks for the week to January 11 also fell by 8%, surpassing the decline in beer.

The findings suggest that Dry January is having a knock on effect for UK hospitality, impacting wider drinks sales at a time when business profit margins are already tasting flat. 

Weekend offender

Sales at UK pubs, bars, and clubs have slowed over the past year due to the cost of living crisis. This month, though, the reduced consumer spending power could combine with the Dry January trend to make an unappetising cocktail for area managers.

The Daily Drinks Tracker shows a decline in sales across all major drinks categories for the week ending 11 January. Compared to the same period last year:

• Beer sales are down by 7%
• Cider, wine, and soft drinks sales are down by 8%
• Spirits sales are down by 18%

That consumers are buying fewer diet cokes, not just less booze, this month suggests the anti-alcohol movement may be turning into an anti-drinks movement, as Brits ditch the pub to avoid temptation entirely.

Weekend trading can usually be relied upon to be busier, with the traditional ‘non school nights’ of Friday and Saturday usually picking up the slack during a quieter spending week. 

Reportedly, though, the first few weeks in January have ended not with a bang but with a whimper. On Sunday 5 January, sales were up to 17% lower than on the same day in 2024, while sales on the Friday and Saturday fell by an average of 9%.

Driest January so far

The sober movement has already been threatening cash flow for taprooms. Younger generations are drinking less and UK workplaces are turning away from alcohol, as work from home policies call last orders on after-work drinks. 

Now, research conducted at the end of last year suggests that this Dry January could be the biggest ever. Estimates from Alcohol Change UK, the organisation behind Dry January, found that around 29% Britons were taking part in the 2025 challenge, or 15.5 million people. 

If correct, these figures would break the record set in 2024. Data from the British Beer and Pub Association show that one in five consumers signed up to go sober last January, a fall in custom that could ironically cause a hangover for the industry in the coming months.

Some pub landlords have slashed their prices in response. Cox’s Yard in Stratford has been offering £4 pints throughout January, while the Necarne Arms in Northern Ireland is selling Guinness for £2.50, capitalising on growing demand for the drink.

“Budget will harm pubs more than Dry January”

In December 2024, the Daily Drinks Tracker recorded a positive end to the year. Buoyed by various festive socials and parties, drinks sales in UK establishments were up by as much as 8% in the final two weeks of the year, compared to the end of 2023.

The champagne will likely stay corked in 2025. According to our exclusive survey of SME leaders, hospitality is the least optimistic about the next 12 months, and for good reason.

Come April, a raft of tax rises announced in the Autumn Budget are due. That includes an increase to both employer national insurance contributions and the national minimum wage. Hospitality, where profit margins are already razor thin, will likely be hit hardest.

Short-term, discount offers may help pubs and bars get through the month. But the sector will need something stronger from the UK government if it is to survive the year.

“The Labour budget will do a lot more to harm the pub industry than Dry January will,” says Jesse Wilson, founder and CEO of the disruptive beverage brand, Jubel. “There will be hugely increased costs for operators this year and I think a lot will struggle.”

Technology has disrupted the financial industry in many ways. As the UK draws closer to becoming a cashless society, digital banking has made it easier than ever to track spending, transfer funds and access financial services from the comfort of your own home.

With this, many new fintech startups have emerged on the scene, offering new and innovative solutions that are changing the way we save, manage, invest and spend money. 

This year’s Startups 100 Index highlighted some of the finest, fastest-growing fintechs in the UK. Here are our top picks of startups that will transform the industry in 2025 and beyond.

The future of fintech

Each company is driving innovation in its own way, leveraging technology to offer smarter, more inclusive and user-centric services. Combined, they are set to reshape the financial landscape this year. 

With a new mission statement to standardise sustainable practices and support underserved communities, they are set to make financial freedom and convenience accessible to more people than ever before in 2025.

Check out the full Startups 100 Index for 2025 to discover even more groundbreaking businesses that are shaping the future across many industries.

Artificial intelligence (AI) has grown expeditiously in the last few years, particularly with the introduction of generative AI through tools like ChatGPT and DALL-E.

So much so that the UK government has announced its own “AI Opportunities Action Plan” to harness its potential and establish the country as a global leader in AI. This plan includes a £14 billion investment towards various AI projects, building AI Growth Zones and initiatives to boost AI adoption in both private and public sectors. 

As AI continues to shape the future, it’s clear that the next big wave of innovation will come from bold startups leading the way. The 2025 Startups 100 Index saw some extraordinary entrants this year, each bringing fresh ideas and solutions to the table. 

In this article, we’re going to showcase the top AI startups that we believe are pushing the boundaries and are set to make a huge impact in the years to come.

From transforming how businesses work to changing everyday experiences, AI is making a real impact in many industries and these companies prove that innovation is alive and well in the AI world.

After all, the UK government is already showing strong support for the space, and these Startup 100 picks prove that business is booming in AI. With so many advancements and the amazing work of these companies, AI will undoubtedly be a game-changer for businesses in the UK and beyond.

We’ve got tons of innovative companies revolutionising industries across the board. Check out the full Startups 100 for 2025 Index to discover our top picks that are shaping the future of business!

Job hunting can be a nightmare, and trying to find gainful employment can be a hard race to run. Filled with anxiety-inducing interviews, task assignments, nervously awaited callbacks, and with a disturbing uptick in frequency, many companies are falling over the first hurdle: the job description.

In our careers we’ve all come across at least one bizarre job spec that had us scratching our heads, and asking the question “did a human being even write this?”. Sadly, that used to be a purely hypothetical, but now the market is becoming increasingly flooded with AI-penned job advertisements.

In the wake of the government’s recently announced AI Action Plan we’re going to see an increasingly artificial hand in the hiring process. But is AI solely to blame for sloppy job ads?

Whatever happened to the well-written job spec?

Sadly, it’s not just your imagination; there’s been a slip in quality control with recent job specs. In 2023, analytics firm Revelio Labs discovered an unnerving trend: job specs that use “red-flag” phrases have been increasing steadily. There’s been an uptick in job postings that use phrases like “work under pressure”, which sets alarm bells ringing for candidates.

There’s also one critical piece of information that’s been missing from job ads with more frequency, and it’s giving job-hunters a headache: how much am I going to be paid? Job ads that disclose the salary have hit a record low. According to Adzuna “only half of UK job ads include a salary”, leaving candidates completely in the dark about how much they’ll be taking home each month before even applying for the role.

Adzuna also reveals that “46% of jobseekers won’t attend an interview unless they know the salary”, so if you’re deciding to omit this piece of information (whether intentionally, or by error) just know you might be cutting your talent pool almost in half.

To make matters worse, job specs aren’t just getting worse, they’re becoming outright misleading. The Independent reported last week that one in five job posts aren’t actually real. So on top of red flags and missing monetary info, job-seekers are having to play their own depressing twist on Russian Roulette each time they send off a CV.

This is because of the increasing amount of ‘ghost jobs’, which is actually spookier than it sounds (who ya gonna call? Well, not the companies, because that’s becoming much harder to do as well). Ghost hiring is when companies intentionally list job ads with no intention of actually employing anyone.

This isn’t just negatively affecting the candidates though, it’s hurting companies as well. A survey, conducted by iHire, suggested that currently only “48.6% of employers think their job ads are effective”, with employers finding the trickiest part of writing a successful job ad was “knowing what information to include to attract the right hires, ensuring the ad effectively “sells” their company”.

AI: advertising immorality?

So what’s to blame for the diminishing quality in job ads? Well, the natural inclination is to point the finger towards those two little incendiary letters: AI. Indeed, the world’s number one job site, now even advertises its own AI-powered job description tool for employers to use. But is there more than meets the AI on this one?

We can’t completely blame those who are turning to AI to assist with recruitment, as supply is not meeting demand in the UK job market. The number of job vacancies has fallen back to pre-pandemic numbers, but UK employers who are providing graduate training schemes have seen a staggering 59% rise in applications since 2023.

The amount of Gen Z job applications are piling up, the economy is on the downslide, and companies are understandably looking to cut costs as much as possible. A big way to save on budget is by cutting out the middle-man, and instead of using recruitment agencies, companies are turning to AI-recruitment tools to keep everything in-house and under their control.

It’s also something of a two-way street, as almost half of all UK job seekers are turning to AI to lie on their job applications. Last year, Singapore Management University (SMU) said it would be doing away with personal statements in undergraduate admissions due to concerns around applicants’ using ChatGPT.

While it appears that we all have our hands dirty when it comes to turning to AI in the job hunt, arguably it seems that it’s the lack of jobs, and rise in applications, that’s causing the specs to decline. So can AI actually lend a helping hand?

Is it all bad?

AI is out there, and there’s no putting that genie back in the bottle, especially in the shadow of the AI Opportunities Action Plan. There’s no doubt that AI is transforming traditional recruitment, but it’s important to remember that it’s a tool like anything else, and if used responsibly, can be incredibly useful.

There’s actually quite a few strong arguments in favour of using AI in the recruitment process. There’s a debate to be had that it removes an element of human-bias from the process, and also makes things more accessible to those who don’t have traditional personality skills, with ChatGPT becoming especially critical for the neurodiverse community.

It can also streamline your hiring process, and free up time for you or your staff, making that increasing pile of submissions more manageable. Another big benefit of using AI to assist in recruitment is keyword optimisation. This helps create target job ads so candidates find relevant roles much faster. AI isn’t just used to write copy either, you can use it to analyse your language to make sure your spec is as targeted and relevant as it can be, and help with the tone of your voice.

Writing a job application: how to do it right way

So maybe AI isn’t completely to blame, but that’s still no excuse for putting a poorly conceived job spec out into the world.

Having a well constructed job application is just as critical to the employer as it is to the prospective employee, as it means you’ll hire faster and receive a higher quality of candidate.

Here are our five key tips for writing a successful job spec, with or without a little help from AI.

1. Keep it short and sweet

Modern recruiters advise keeping things concise and to the point. Candidates will be sifting through dozens of job postings daily, so they don’t want to be reading an essay. It’s a waste of your time and theirs. Keep it jargon free, and include the essential information: job title, salary, location (or if it’s hybrid), key responsibilities and role requirements.

2. Keep your tone consistent

You want to convey your company’s culture in your job description. This will help you narrow down the types of personalities you’ll want joining your business. If you’re a fun, energetic startup, you don’t want to come across sounding like an austere, multi-national corporation (again, AI can help you out with this).

3. Be specific

Murky, unclear and confusing job specs will only have your inbox flooded with unsuitable candidates, and may even have you missing out on some rising stars. Be upfront and clear about what it is you require, whether it be hard skills or soft skills. Also, try to be realistic, if you’re trying to fill a project manager position, there’s no point listing ten years experience in nuclear physics as a “must have”.

4. Avoid red flags!

As we mentioned, those pesky red flags are littering the playing field at the moment. Avoid them like the plague, avoid descriptions like “must handle stress well”, and don’t refer to your staff as being “like a family”. You’ll only have candidates running for the hills.

5. Finally…that human touch

Using AI to pen your job specs to save time and money is perfectly understandable, just get a good old-fashioned Homo sapien to give it the once over before hitting publish. After the robots have worked their magic, just ask yourself “if I was looking for a job, would this make sense to me?”.

Curically, make sure to check on our recruitment process guide for small business owners. For the next stage in the hiring process, you can consult our range of interview guides that will help you nail down the best questions to ask in an interview, and find out if there are any interview questions that can land you in hot water with the law.

If you find yourself on the other side of the table, we also have guides to help you ace your interview, covering everything from how to introduce yourself in a job interview to what you should be asking at the end of a job interview. We also provide guides on how to answer the classic interview questions, including:

• How to answer “what are your weaknesses?”
• How to answer “tell me about yourself?”
• How to answer “why do you want to work for us?”

Starting and running a business comes with a host of challenges, one of which includes workplace layoffs – something that seems to be rife in the UK’s job market right now.

With more and more announcements of job cuts hitting the headlines, there’s certainly a growing sense of dread among employees about their future and financial security.

Yet despite the grim outlook, nearly a quarter of businesses reported that personal job loss or unemployment was the main motivator for starting their venture.

So if you’ve faced a job loss and feel less than thrilled about the job-hunting grind, this could be your sign to step into entrepreneurship.

Job losses are inspiring new businesses

According to research from the Startups 100 for 2025 survey, 24% of startups cited job loss as a motivator for starting a business. While identifying a market opportunity was the leading motivation for our respondents (37%), there’s still a strong link between job loss and new entrepreneurship. 

After all, the first half of 2024 saw a record number of 468,000 new businesses created. Given that the rate of redundancies was 3.1 per 1,000 employees (equivalent to around 89,000 cuts) in the first quarter of 2024, there could be a correlation.

The job cuts keep coming

Despite the UK’s unemployment rate being relatively low, there have been 761,358 job cuts made in the last year – the most since 2010 – particularly in the tech, healthcare and automotive sectors. 

A far cry from the Great Resignation era in 2021, more businesses are carrying out workplace redundancies in response to economic pressures and trying to cut costs.

Things aren’t looking too promising for 2025 either. Given the Labour government’s announcement that  National Insurance contributions for employers will increase, there’s the risk of further redundancies being made to reduce outgoings and manage increasing expenses.

Lesley Rennie, principal employment law solicitor at WorkNest, comments: “For some, it’s inevitable that cuts will need to be made to offset the financial impact of these changes.”

Starting a business after a job loss

Losing your job may be a painful experience, but it can also be a catalyst for trying something new and challenging.

You may have been made redundant but you can turn a negative into a positive. Here are a few tips to help you get your business off the ground.

• Refine your idea: every good business starts with an idea, but you also need to justify why you’re launching it, who it’s for and why it’s valuable. If you’re short on ideas, check out our 101+ business ideas guide for some inspiration.
• Do your research: conduct market research to get a better idea of the sector you want to enter and who your competitors are. You should also research your target audience to get a better understanding of their needs.
• Create a solid business plan: a business plan is an important document that outlines your business’s purpose, goals and strategies to achieve them. It should include your mission statement, market and competitor research, products/services, marketing and growth plans and relevant financial projections.
• Leverage your skills (and learn new ones): consider your strongest hard skills (e.g. copywriting, graphic design, data analysis, software engineering, etc.) and soft skills (e.g. leadership, teamwork, adaptability, etc.) and use them to your advantage. However, you should also be open to learning new skills as well, particularly if they’re relevant to your business’s growth or sector. For example, skills in financial management are an absolute must for managing your profit margin effectively.
• Start networking: a strong support network is essential as it’ll help you build professional relationships, particularly contacts that can put you in touch with potential customers or clients. It also helps you stay up-to-date with industry trends and connect with mentors who can offer advice and support in navigating difficulties or setbacks. If you’re not sure where to start, check out our guide on networking for effective strategies for building meaningful connections.

Facing a job loss is never easy, but it could be the push you need to start something even better. Whether you’re building on your skills, chasing a long-time dream or simply taking control of your future, starting a business can be a powerful way to turn a setback into an opportunity. So take it one step at a time, stay curious and remember – every successful entrepreneur started somewhere.

Need some inspiration? Check out our Startups 100 Index for 2025 – packed with stories of founders who made their business dreams a reality.

The tech industry has faced a lot of turbulence in the last few years, to say the least. From mass workplace layoffs to economic uncertainties, it’s been a rollercoaster ride for many businesses.

But even with these challenges, a new wave of innovative startup companies is creating positive change in the tech industry with clever ideas and effective solutions. These agile and forward-thinking firms are shaking things up and proving that even in tough times, there’s plenty of room for growth and transformation.

In this article, we’ll spotlight our top tech startups for 2025. Whether you’re a tech leader yourself, an investor, or a computer geek, then these are the companies to keep an eye on as they lead the charge to a brighter, tech-enabled future.

Final thoughts

As we’ve seen, 2025 is shaping up to be an exciting year for tech startups. From cybersecurity breakthroughs to innovative solutions in gaming, body armour and beyond, these companies are pushing the boundaries and changing the game for good. 

So whether you’re starting your own business, want to collaborate or just looking for inspiration, these companies are definitely ones to watch. The future is full of opportunities, and these innovators are leading the charge into 2025 and beyond.

Check out the full Startups 100 for 2025 Index for more startup businesses that are making waves in their industries.

This week, prime minister Sir Keir Starmer threw his weight behind the UK’s ripening AI sector by unveiling the AI Opportunities Action Plan, a new ‘pro-growth’ strategy to harness the technology and improve productivity.

Led by tech entrepreneur Matt Clifford, the roadmap outlines plans to develop AI products and services for a digital transformation of the public sector. In a post on X on Monday, Clifford stated his belief that “AI is the single most powerful lever we have to achieve this”.

Whitehall has said it will lean on the UK startup and scaleup scene to action its plans. Industry leaders have praised its ambition, but some are asking whether the plan provides sufficient support to build an ecosystem that can rival the dominance of the US and China.

£14bn a “drop in the ocean”

The International Monetary Fund (IMF) has estimated that AI could add up to £47 billion a year, over the next decade, a statistic highlighted within the government’s AI blueprint.

The opportunities are clear. Equally evident, though, are the hurdles. Chris Mooney, partner at law firm Marriott Harrison, stresses that for the UK to become an AI superpower, “we need huge supercomputing power; huge amounts of data to train the AI systems; [and] huge numbers of people trained in developing and using AI systems.”

It’s an expensive wishlist. The government has so far committed £14bn to the plans, which will be used to fund a supercomputer as well as new ‘growth zones’ across the UK. Yet some have warned the amount is a drop in the ocean and that more funding will be needed.

“With businesses grappling with inflation, high interest rates, incoming National Insurance rises, more needs to be done to support adoption, particularly for smaller firms”, says Patrick Sullivan, Chairman of the Parliament Street think tank, adding, “14bn is a drop in the ocean”.

Research by Ayming UK, a consultancy specialising in innovation funding, finds that money is the greatest barrier to innovation for UK business, with 39% reporting it as a problem.

“UK needs founder talent”

Another challenge is the need for founder talent. With the UK economy largely stagnant, startup regions such as Old Street in east London have become less attractive as foreign-born founders and skilled tech workers head instead to more welcoming countries. 

The Innovator Founder Visa, a fast-tracked visa scheme for entrepreneurs setting up a business in the UK, has somewhat eased the problem. But visa restrictions introduced last year have simultaneously curbed hiring from abroad, weakening startup recruitment plans.

Sean Kane is co-founder and chairman of F6S, a global community of over five million startups. Kane tells Startups that, to hone AI talent, the government must ensure its plans benefit “a new generation of innovative startups”.

“World-beating AI founders build world-beating AI companies”, adds Kane. “To win the AI race, top startup founders must see the UK as best for funding, talent, taxes and regulation.”

That includes nurturing existing AI talent in the UK, of which there is plenty. Our 2025 Startups 100 Index features many pioneering AI startups that are already demonstrating world-leading technology, such as legal tool Robin AI and fitness software MAGIC AI.

Richard Robinson, CEO and co-founder of Robin AI, echoes Kane’s sentiments. “We are proud to be part of such a strong group of startups — the voices the government needs to listen to as it seeks to capitalise on AI and keep Britain at the front of the global AI race”.

“Regulation before innovation”

The issue of regulation looms in the background of every AI debate. Also this week, Starmer added fuel to the fire by announcing that the UK would “go its own way on regulation”.

The prime minister’s comments have raised concerns about how developers will train and progress their generative models without violating as-yet-undefined regulatory standards.

Chris Mooney says the UK’s “wait and see” approach to AI law was causing confusion. “Our experience of working with clients is that they find the current position uncertain”, he notes.

Breezing past the legal fine print could also spook customers, who need to embrace AI for the Action Plan to work. This week, a YouGov survey found that 40% of British adults currently have a negative or very negative perception of AI technology companies.

With industry leaders clamouring for legislation to solidify the AI Action Plan, the government might need to reconsider its aversion to red tape. “If the UK wants to take the lead on AI, it needs world-leading pro-innovation regulation,” Mooney affirms.

Some things are hard to shake. The financial fallout from a global pandemic, it seems, is one of them. Almost five years on from the start of the UK’s COVID-19 lockdown, exclusive data from Startups reveals that a large proportion of SMEs are still on the long road to recovery.

Startups surveyed a representative sample of 531 UK businesses at the end of 2024. The results show that 26% of business leaders think it will take them two years or more to recover from the economic and political challenges of the past five years.

It’s been a relentless half decade for small businesses, with the pandemic spilling into a global economic downturn and energy bill crisis. Now, the data suggests that hopes for a swift recovery in 2025 may be premature.

What’s been the toll of the past five years?

Economic and political challenges of the past five years have hit businesses indiscriminately leaving just 8% of companies unaffected. But these issues haven’t faded away in 2025.

High interest rates are prolonging the financial hurdles. Loan repayments continue to burden SMEs, many of which have gone into debt in order to stay afloat in the past few years. Some are still paying back Bounce Back Loans, a government-run scheme established in 2020.

Startups also asked companies whether they were thriving or surviving, in order to gauge how they had responded to navigate their money troubles. Of the surviving businesses:

• 58% had been forced to make workforce layoffs
• 56% had suspended employee benefits
• 54% had suspended employee pay rises
• 51% had shifted to a remote workforce
• 50% had secured another loan

Zohra Huda, Editor of Startups.co.uk, comments: “Our statistics speak for themselves. It’s been a brutal onslaught for the backbone of the British economy, our small businesses. In spite of the hope brought by a new government in 2024, focus has had to switch from growing to just getting by, with the impact being felt by employers and employees alike.”

As some sectors thrive, others falter

According to the Startups data, 22% of firms reported they have already recovered. How long a company takes to bounce back appears to be sector-dependent, rather than a reflection of strong or weak leadership.

The Startups research shows that construction (59%) and consulting firms (52%) were the most likely to say they had already recovered or were not impacted by the last five years.

Last August, growth in the UK construction sector hit its highest level in more than two years after the government’s planning law reforms helped to boost confidence.

At the other end of the spectrum are pubs, bars, and restaurants. Staff shortages and poor trading conditions have made hospitality the least optimistic sector for 2025. 11% of business owners in this field said they anticipate recovery will take more than two years.

Creative arts businesses were the most likely to say they will never recover financially from the past five years. 11% of businesses in this sector expect to fail completely.

Such pessimism may be the result of a steady drain on external financing for the sector. According to Stop Arts Cuts, arts funding fell by 28% in real terms between 2017 and 2022.

SMEs find reasons for optimism

Despite the mountainous terrain ahead, the vast majority of SMEs we surveyed reported high levels of optimism for the future. 82% of small businesses expressed positive sentiments about the next 12 months, compared to just 3% that were not optimistic.

This represents an increase of 23% from 2023, when six in ten companies said they felt positively about their business growth for the year ahead. Most encouragingly, 27% of businesses surveyed in 2024 said they felt highly optimistic about the future.

The increasingly positive sentiments expressed by businesses in our data year-on-year suggests that, while the road to recovery is long, the end is coming into sight for more firms.

While a quarter of business leaders might expect to be in the red until 2027, 44% of businesses told us they expect to fully recover by the end of this year.

Prime minister Sir Keir Starmer has today signalled his strongest commitment to support AI startups so far, with the announcement of a new AI Opportunities Action Plan.

The full list of recommendations aims to use AI to ‘revolutionise’ the public sector and eradicate inefficiency. It includes the creation of new growth zones across UK regions.

In a press release, Science, Innovation and Technology minister Peter Kyle, said: “We want Britain to step up; to shape the AI revolution rather than wait to see how it shapes us.”

Also today, we published the 2025 Startups 100. The Index showcases plenty of fast-growing AI entrepreneurs, based in the UK, that could play an important role in the new strategy.

What is the AI Opportunities Action Plan?

Debate has raged over AI innovation versus regulation, as the rapid advancement of the technology and growing investor appetite for AI startups comes up against risk concerns.

In response to the conundrum, the government commissioned tech entrepreneur Matt Clifford to build a report into how the UK can build out its AI capabilities last July.

The findings have been packaged into a set of 50 recommendations which form the basis for the new AI Action Plan. Clifford, who is CEO of startup accelerator Entrepreneur First and previously helped to organise last year’s AI Safety Summit, will also lead the project.

Among the promises outlined in the new proposals, the government has pledged to:

• Invest in a new supercomputer to boost computing power and aid AI research and development (R&D)
• Increase the number of top AI research talents who work in the UK in order to tackle the digital skills shortage
• Build a series of AI-focused “growth zones”, starting in Culham, Oxfordshire, by accelerating planning approvals for data centres
• Streamline the AI procurement process to improve funding and support scale-up for successful pilots
• Utilise £14bn of investment in AI infrastructure, fundraised by large tech companies

Speaking to BBC News, the prime minister said AI “will drive incredible change” and “transform the lives of working people,” adding “Our plan will make Britain the world leader”.

Opportunities for startups

The AI Action Plan provides a welcome show of faith in the UK’s burgeoning AI startup scene. If implemented properly, it could also resolve hurdles currently faced by tech firms.

These include limited access to data centres and other resources, which the proposed new growth zones and planned supercomputer is intended to fix.

Working with large data volumes can also guzzle cash, which is why R&D is often an AI startup’s biggest expense. The government has said it will lean heavily on Innovate UK, part of  UK Research and Innovation, to bankroll promising new AI businesses.

Some problems will be harder to untangle. Digital talent shortages have resulted in a skills gap for AI startups, with many employers reporting that they are unable to find suitable hires.

In answer, the government says it will convince promising tech talent to relocate to the UK. To do so, restrictions to the visa process, made last year, will need to be undone. Provisional data shows that the UK has seen a huge drop in applications since the changes were made.

Commenting on the announcement, James Klein, Corporate partner at law firm Spencer West LLP, said: “it is imperative that we generate tangible future long-term growth for early-stage companies, as well as scale ups, at a time when there are many in the UK weighing up their options and looking to potentially take their businesses overseas”.

Top AI startups for 2025

Kyle said the plan will enable the UK to nurture AI startup talent. “At the moment, we don’t have any frontier conceptual, cutting-edge companies that are British-owned”, he reports.

We’d have to disagree with that statement. Our 2025 Startups 100 Index, published today, features numerous pioneering, AI-enabled startups that are poised to disrupt various public and private sectors, including the NHS. They include:

• Robin AI: our runner-up, a legal tech startup using AI to automate contract reviews
• MAGIC AI: an AI-powered fitness coach that lives in your bedroom mirror
• Userled: using generative AI to personalise B2B offers and content journeys
• Unify AI Ltd: a platform to connect developers with the best LLM for the job
• Mindgard: a a full-stack security solution to safely deploy and operate AI software
• Purple Transform: software that uses AI to detect danger in real time
• Lumi: an AI camera to track and record experiments in the lab
• Mach42: AI-enabled platform to cut the product design development cycle in half

After an explosive period of growth, this early generation of AI entrepreneurs is already answering the demand for innovative, first-class solutions.

If the AI Action Plan succeeds in delivering dedicated funding and R&D support, and can foster a thriving AI ecosystem, these startups can pay back what they gain by working to improve inefficiencies in the public sector and restart the UK’s growth trajectory.

Work-life balance has evolved rapidly in today’s workplace, and it appears to be confusing UK bosses. Exclusive data from Startups reveals that business leaders can’t decide whether staff should be able to switch off or be expected to put in extra working hours.

We surveyed a representative sample of 531 SMEs towards the end of 2024. The results show that more than nine out of ten businesses support the government’s proposed Right to Switch Off (RTSO) laws, which would give employees the right to disconnect from all work-related communication outside of their normal work schedule.

At the same time, however, 39% of respondents said they consider it either necessary or acceptable for employees to work beyond their contracted hours.

In the past half decade, UK business growth has slowed due to challenging economic headwinds. Now, it seems that leaders are caught in a Catch-22; concerned about the impact on staff wellbeing, but also desperate to improve productivity and ensure survival.

Switch off to save the workforce?

Before it came to power, the Labour party pledged to introduce the RTSO to provide a code of practice for bosses on contacting staff outside of work.

The rise of flexible working has blurred lines for many hybrid and home workers, many of whom find themselves unable to draw a line between their professional and private lives. Under the law change, workers would be empowered to ignore work-related communication outside their normal work hours.

In total, 94% of business leaders we surveyed told us that they would support the new policy, with 50% expressing strong or very strong support.

Of the firms that expressed the strongest support for the laws, 38% said it was detrimental to employee wellbeing, suggesting that the impact on staff wellbeing was their biggest concern.

Recent discussions on the rise of always-on culture, enabled by flexible working, have highlighted concerns about its impact on employees’ mental health. Since 2023, record levels of employees have been leaving the UK workforce due to burnout and overwork.

Hypocritical bosses?

Despite overwhelming support for the RTSO, the data also finds that UK employers have a different perspective on work hour expectations when it comes to their own workforce.

When asked how they felt about requiring their employees to work beyond their contracted hours, just 11% of respondents said they thought it was unfair and harmful to staff wellbeing.

In fact, the most popular response (28%) is that contacting employees who have finished their work is acceptable in certain situations. Meanwhile, a further 11% said that it is absolutely necessary and beneficial for businesses.

45% of startups less than a year old think it is necessary or acceptable to contact employees outside work hours, the largest percentage of any business age group.

This is likely a reflection of startup culture, which tends to require fast and agile decision-making so that leaders can respond quickly to market shifts. The findings raise questions about how the RTSO might inadvertently curb new business growth and scale-up.

UK lagging behind

The government is in a difficult bind. It must foster business growth and competition, while also protecting employee rights in a fast-changing world of work; a conundrum that our data suggests business owners have been similarly thrown by.

Its response has been to delay. Despite stress levels continuing to rise among UK workers, the expected RTSO clause was missing from October’s Employment Rights Bill. The reforms will instead be subject to a consultation that will explore the practical impact on employers.

Pausing the RTSO could see the UK lag further behind its neighbours. European countries such as Italy and Portugal have already taken steps to prevent out of hours work contact.

However, without proper guidance, the proposed RTSO risks becoming a source of confusion and conflict for UK businesses, rather than a catalyst for positive change.

Editor of Startups.co.uk, Zohra Huda, says: “The RTSO debate has small businesses stuck between a rock and a hard place. They want to do the right thing by their employees but at what cost to their productivity and profitability? With the government hesitant to act decisively, it could be a tricky year ahead of navigating muddy waters.”