Success or failure of an organisation is based on various internal and external factors in the market. This study analysed the political and government policy related challenges faced by the UK Start-ups. The analysis on the literature review identified that the tax policies, Brexit and other initiatives of the UK government towards the start-ups affect their development. This research conducted an online survey by involving 100 entrepreneurs and management level employees of various start-ups in the UK. The research used quantitative research method, correlation analysis and regression analysis to derive the required result.
The study identified that almost all the government policies moderately or severely affect the development of Start-up companies in the UK. The correlation analysis performed in the study revealed that all the government policies considered in the study are strongly related to the development of the start-up companies. According to the regression analysis and the responses from the entrepreneurs Goods and Service Tax policy, Import and export policies and Labour laws and other related Government legislations are the important challenges to the start-ups. However, the study identified that the initiatives of the government and other strategies to develop start-up companies in the UK are supporting their development. Moreover, the study identified that the Government's interest on arranging mentoring and training programs is majorly supporting the development of these start-ups. The study recommended that the government policies should be amended in the favour of the start-up companies in order to support their development. Moreover, this will also increase the number of new start-up companies in the country.