From Taxes to Texas: Why UK Entrepreneurs Might Be Eyeing the Exit With rising taxes and regulatory changes, the UK's allure for entrepreneurs is waning, and the US could be the next destination for those seeking fresh opportunities.

The road ahead for entrepreneurs in 2025 is anything but smooth. Between evolving tax policies, economic uncertainty, and the buzz around artificial intelligence (AI), business leaders have their work cut out for them.

In this Entrepreneur UK interview, we explore how one CEO, Alex Mifsud, of London-based finance startup, Weavr is navigating these shifts, from keeping costs in check to embracing technology, all while staying focused on long-term growth.

What trends do you expect to drive UK entrepreneurship in 2025?
The UK budget and the US election are both momentous changes that will impact the risk-reward equation for entrepreneurs, but not in obvious ways perhaps. Entrepreneurs will not stop creating new ventures because capital gains taxes have changed, but they may well create them elsewhere. As the UK has got arguably less attractive to be a business owner, the US is certainly poised for a shift to more lightly regulated, less taxed jurisdiction that will draw the best UK entrepreneurs westward.

How are you preparing for economic changes in the new year?
We are becoming more careful with hiring, not only because of the increased cost of employment from the recent budget and other legislative changes, but also due to the importance of keeping costs under control as we scale - in other words, due to the critical importance of having a path to profitability in the current fundraising market.

What sustainability initiatives will you focus on in 2025?
As a company, we will continue to reduce unnecessary travel and to work on more efficient ways of working across our geographically spread-out organisation and customer base. There is of course a real trade between the power of face-to-face meetings and the monetary and environmental cost of bringing all the company together: understanding and navigating such trade offs, and not only in travel - must become routine in an era where the cost to the planet is increasingly high.

What challenges do you foresee with talent management in 2025?
Inflation has been fought off through higher interest rates, which in turn has resulted in a pressure on investment and employment. That means the market for talent, especially in sectors that tend to attract venture backed startups, is not as tight as it has been at the peak of a couple of years ago. During this period, wages have gone up, and will stay high. More talent is now available but hiring budgets are now tighter. That means startups like Weavr have to be far more careful and selective about their hiring.

How will AI and automation impact your business strategy next year?

We are now moving beyond peak AI hype into a reckoning of value for business adoption of AI. There are so many opportunities to improve the quality and cost ratios in financial services especially in areas of compliance, risk management, customer service, and also application development and testing. As a company in a highly regulated space we have to use AI responsibly, before transitioning successful experiments to mainstream use, but in 2025 that shift will start to ensure we are able to get the benefits.

What's your approach to securing funding as we enter 2025?
Now that our strategy of focusing on equipping B2B SaaS businesses with embedded finance solution is getting increasing traction, our priority is to make sure that the financial shape of the business is right. That means having a healthy engine of sustainable growth, and a plan to take us towards profitability through improving unit economics and tight control on fixed costs. Investors are looking for companies that have weathered the inflation years during which venture capital funding dried up for many startups.