Almost half of aspiring entrepreneurs across the North of England have delayed or abandoned business plans due to a lack of self-belief, according to new research.

Data commissioned by the British Business Bank reveals that "imposter syndrome" and a lack of confidence are acting as significant brakes on the regional economy. Across the North, 60% of small business leaders have walked away from a potential venture due to a lack of confidence, a figure that mirrors a national "crisis of confidence" estimated to have cost the UK over 547,000 potential start-ups.

In the North West, 44% of entrepreneurs cited a lack of self-belief as a primary barrier to starting or growing a firm. While 28% of leaders in the region admit that a fear of failure holds them back more than a lack of funding, North West founders appear slightly more resilient than the national average; only 27% feel they are not the "right kind of person" to run a business, compared to 30% across the UK.

Regional Stagnation

The impact of this confidence gap extends beyond the initial launch phase, affecting day-to-day operations and long-term scaling:

Yorkshire and the Humber: 47% of small business leaders have delayed or cancelled a launch due to confidence issues.

North West: 40% of leaders have delayed or avoided pitching to clients, while 35% have postponed expansion plans.

The North: Collectively, 49% of entrepreneurs in the northern regions have stalled their ambitions because of self-doubt.

The research highlights a stark generational divide. Nationally, 57% of entrepreneurs aged 18 to 34 have delayed a business launch, compared to a significantly more confident older cohort.

Overcoming the "Imposter" Barrier

For Mike Gore, founder of St Helens-based Virtuoso Golf, the transition from working on offshore oil rigs to business ownership required a significant "leap of faith." Supported by a £50,000 Start Up Loan, he transformed his passion for golf into a virtual simulator venue.

"In giving up my job, and with no supplementary income for household bills, it was a big moment for me to back myself," Mr Gore said. "I’m someone who isn’t great with anxiety, so I’ve just had to accept that sleepless nights are part of the deal, and far better than the sleepless nights I used to have offshore."

Similarly, in Sheffield, Janet Packer and Lindsey Bielby used a £20,000 loan to launch Growing Wild Outdoor Nursery. Ms Packer said: "Starting the nursery, and later expanding it, meant backing ourselves even when we didn’t feel completely ready. You build confidence through experience, celebrating small wins, and asking for support when you need it."

Louise McCoy, Managing Director of Start Up Loans Products at the British Business Bank, said: "Confidence should never be a barrier to pursuing your dreams. Like in other walks of life, new business owners are often affected by imposter syndrome. This is why we connect Start Up Loans recipients with mentors and provide other post-loan support."

Fact Check: The Northern SME Landscape

While the British Business Bank data focuses on psychological barriers, broader economic indicators provide essential context for the North’s small business sector:

Regional Business Density: According to the latest Department for Business and Trade (DBT) statistics, the North of England (comprising the North East, North West, and Yorkshire and the Humber) accounts for approximately 15% of the UK’s total SME population.

Northern Powerhouse Trends: Data from the Northern Powerhouse Investment Fund (NPIF) indicates that while the North maintains competitive rates of business "births," the region has historically faced a "scale-up gap" compared to the South East, often attributed to a lack of local mentorship and non-equity growth capital.

The 547,200 Figure: This national estimate is derived from the DBT 2025 figure of 5.7 million SMEs. The research indicates that 15% of this total (855,000) represents potential ventures, of which 65% were not pursued due to a lack of confidence.

Sector Resilience: Despite confidence hurdles, the North West and Yorkshire remain hubs for high-growth sectors, including life sciences and advanced manufacturing, which contribute significantly to the £350bn Northern economy.