More than a third of the owners of small and medium-sized businesses say they “accidentally” fell into running a company, according to research published by Santander UK.

The bank’s poll of 1,000 business owners found that 35 per cent described their route into entrepreneurship as accidental, and that 62 per cent had no previous experience in their chosen industry when they started out.

The findings were released alongside the winners of the 2026 Santander X UK Awards, the bank’s annual entrepreneurship competition, in which finalists share £150,000 in equity-free funding.

According to Santander UK, the most common trigger for starting a business was a need for more flexibility, cited by 34 per cent of respondents. A quarter (25 per cent) said they wanted financial independence, while 21 per cent had been out of work or made redundant.

The same proportion said they had turned a side hustle into a full-time business, and 15 per cent each cited identifying a gap in the market or feeling ready to take the risk.

The bank’s figures show many owners learned as they went. Some 39 per cent said they did not understand the basics of running a business when they started, and 79 per cent said they had learned almost everything on the job.

A total of 60 per cent said running their own business had proved harder than they expected, and the same proportion said day-to-day tasks had become more complex as the business grew.

On support, 81 per cent of owners said they valued having someone to talk to about their business when dealing with complex situations, and 83 per cent said they valued human guidance over solely digital tools. Almost three-quarters (71 per cent) said they wished they had more tools and support to grow. Networking with other businesses, managing cash flow and long-term growth planning were each named by 31 per cent.

The research was published as official figures showed a rise in new businesses. The Office for National Statistics recorded 79,325 business creations in the UK between April and June 2026, a 2.2 per cent increase on the same quarter of 2025. The ONS also recorded 76,840 business closures in the quarter, up 2.0 per cent year on year.

Nine founders and businesses reached the national final across the University, Startup and SME categories, pitching to a judging panel for a share of the funding and a place in the Santander X Global Awards.

The University category was won by Olimera Therapeutics, a biotechnology company using antibody technology to target incurable diseases including Parkinson’s. Peripear, which has developed a wearable device designed to minimise the impact of tears during childbirth, won the Startup category.

The SME award went to Think for the Future, which runs inclusion centres in schools aimed at improving student behaviour, resilience and engagement in learning.

Nicky Morgan, Baroness Morgan of Cotes, a non-executive director of Santander UK and one of the judges, said: “I was blown away by the impressive and important work they are doing across key sectors for the UK economy, including healthcare, tech and sustainability.”

Puja Patel, head of strategic programmes and universities at Santander UK, said: “Our research shows that the UK is a nation of innovators and entrepreneurs, with more than a third of business owners describing themselves as ‘accidental entrepreneurs’ who never planned to start their own business. Whatever their route into entrepreneurship, having the right support, skills and connections can make a crucial difference.”

She said the programme allows start-ups and SMEs to “build their confidence, develop their skills, expand their networks and compete for vital equity-free funding”.

Santander X is a global initiative of Banco Santander offering training programmes, challenges and awards, networking and financial products to entrepreneurs and companies. Its prize money is equity-free, meaning winners do not give up a stake in their businesses, a question of ownership Business Matters has examined in its guide to bootstrapped businesses.

Other early-stage backers are also expanding support. In March, Virgin StartUp announced a £20m pot of Start Up Loans funding for founders in 2026/27, delivered through the government-backed programme.

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