Taking the leap to start a business: what makes us hesitate?

In Indiana Jones and the Last Crusade, Indiana stands at the edge of a vast chasm. He must get to the other side to save his father, arguably Sean Connery’s greatest role.

There’s no bridge in sight and no guarantee he won’t fall. “It’s a leap of faith,” he realises. Then, with hesitation but conviction, and eyes closed, he steps out into thin air – and lands on a hidden bridge. Only when he commits does the path reveal itself. You can watch the iconic Indiana Jones leap of faith scene on YouTube.

For many UK entrepreneurs, taking the leap to start a business begins not with a solid business plan but with a decision to try. There’s no perfect roadmap or guarantee of success; instead, there’s a mindset shift – from security to uncertainty, and from hesitation to belief.

In this article, we’ll explore why British entrepreneurs often hesitate to take that first step, what data reveals about starting a business in the UK, and how small, strategic actions (micro-leaps) can transform doubt into traction. We’ll also hear from Graeme Donnelly – entrepreneur, CEO, and Founder of 1st Formations – and examine how embracing motion over certainty is often the gateway to progress.

What do the numbers say about starting a business in the UK?

The good news: the entrepreneurial landscape in the UK is undeniably thriving.

In 2023 alone, over 900,000 businesses were registered – a record-breaking figure. According to the UK Government’s 2024 business population estimates, 99% of the 5.5 million private sector businesses are also small businesses (fewer than 50 employees).

But the risk is real: nearly 1 in 5 UK businesses fail within their first year, and 60% don’t survive past three. So why are so many people still taking the leap to start a business, especially if the odds are so uncertain? For countless founders, starting a company isn’t purely rational; it’s also personal. It’s about creating autonomy and solving real problems. It also comes from the need to shape their future on their own terms.

Why do British entrepreneurs hesitate to launch a business?

UK culture prizes security: good job, stable income, decent pension. Starting a business demands you step away from stability and towards uncertainty.

There’s a deeply ingrained fear of starting a business in the UK. Research by think tank Onward highlights how fear of failure is 20% more likely to stop Brits from starting a company compared to global averages. Over the past two decades, this reluctance has only grown.

• 10 great UK businesses with humble beginnings
• Survey: 90% of entrepreneurs are happier now they are business owners
• Research shows a hopeful outlook for the UK’s small businesses

Where our American counterparts often celebrate failure as part of the journey (think Howard Schultz, former CEO of Starbucks, who emphasises failure as a foundational experience), British entrepreneurs tend to see it as an endpoint. As a result, many potential founders stay in safe roles, even if they’re unfulfilled.

But our perspectives could be changing. Startup culture, the rise of personal branding, and high-profile founder success stories – including those of Steven Bartlett and Gymshark’s Ben Francis – might be turning the tide.

In addition, you no longer need a business degree or thousands of pounds in capital to launch a business.

With cost-efficient services like 1st Formations, which simplify setting up a business in the UK, and new technology such as accessible accounting tools, the barrier to entry for new founders has never been lower, and the leap never more attainable.

For those who have a business idea but are struggling to act on it, fear can create a standstill.

You’re no longer content with your current situation, but not yet confident enough to take the plunge. In this limbo phase, many aspiring entrepreneurs enter what’s known as the liminal space: a psychological in-between state.

What is the liminal space in entrepreneurship?

So, where does that leave you, the aspiring entrepreneur, standing on the edge?

You may find yourself in the ‘liminal space’, which is the transitional phase from the old to the new. This in-between phase is uncertain ground on which new entrepreneurs often find themselves after coming up with a business idea but before taking any real steps forward.

This grey area can feel unsettling. As Faith Jeremiah, Adan Suazo, and Russell Butson describe it in their study ‘Contemplating the Value of Liminality for Entrepreneurs‘, the liminal space in entrepreneurship is “fuelled by opportunity, but clouded in uncertainty and ambiguity”.

The authors also explain that while the liminal space is often marked by disorientation and discomfort, several entrepreneurial studies position it as a positive transformational state that can foster growth, self-discovery, and opportunity.

So, while the liminal space can feel paralysing, it also holds potential. Progress begins when you stop waiting for certainty and take one intentional step towards your goal, which is where micro-leaps come in.

Micro-leaps: action breeds clarity

Escaping the liminal space doesn’t require unwavering confidence; it just requires the courage to take one meaningful step at a time.

Micro-leaps are small, manageable actions designed to help you move forward with clarity, reduce uncertainty, and reinforce your sense of identity as an entrepreneur.

Here are a few actionable micro-leaps to consider:

• Use a company name-checker tool to secure your chosen company name (and domain name)
• Tell a trusted friend or mentor about your business plan
• Create a simple website with a landing page for your product or service
• Outline your ideal customer and their biggest challenge or pain point
• Sign up for an online marketplace where your product could be listed
• Reach out to one potential customer for feedback on your idea

These small actions shift your identity. Suddenly, you’re not just thinking about being an entrepreneur but acting like one. Each action reinforces this new identity, as you become someone who takes initiative, solves problems, and builds something real.

Simultaneously, micro-leaps draw you out of the in-between state – from thinking about starting a business to running one – and transform uncertainty into self-belief.

Graeme Donnelly’s founder moment

Like many entrepreneurs, Graeme Donnelly didn’t start with certainty. When he launched 1st Formations, he didn’t have a flawless plan, but he did have a clear mission and the drive to make it happen.

When 1st Formations was founded, we were no different. There was no blueprint, no certainty. Just a belief that the UK needed easier, more supportive pathways to business ownership. We know that taking the leap takes courage.

But we also know that courage doesn’t mean going it alone. We’re here to stand beside every entrepreneur taking that leap of faith, providing the tools, support and reassurance to turn bold beginnings into brilliant businesses. It’s why we offer more than just a formation service – we’re a support partner for the journey ahead.

Graeme’s early approach was grounded in solving a real problem, starting where you are, and improving as you go. He shares insights into this entrepreneurial mindset weekly on LinkedIn and bite-sized, practical advice for new entrepreneurs.

Overcome the fear of starting a business

If you’ve been hesitating, remember: taking the leap to start a business isn’t about having all the answers – it’s about deciding to take action. It’s how you turn ‘what if?’ into ‘what now?’

If your idea keeps tapping you on the shoulder or your heart races at the thought of creating something that’s truly yours, acknowledge it. Ask yourself: What’s one small step I could take today if I knew I couldn’t fail? What’s holding me back – skills, confidence, clarity?

Each small action gives you feedback, confidence, and energy to progress. And when you’re ready to take that first real step, like securing your chosen company name or registering your business, we’re here to make that process simple and to support you along the way.