The United Kingdom’s reluctance to embrace risk-taking is limiting entrepreneurship, investment and economic growth, according to Bloomberg Opinion columnist Mihir Sharma, who echoed criticism recently raised by Nvidia chief executive Jensen Huang.
Speaking to politicians and investors in London last week, Huang said Britain had sufficient talent but lacked the entrepreneurial drive needed to turn opportunities into major successes. He argued that businesses often focus on reasons not to pursue new ideas rather than finding ways to make them work.
Although Huang has invested millions in five British startups, concerns remain over the country’s financial and regulatory environment, which critics say makes it difficult for companies to expand at scale.
Several promising British businesses have moved abroad or been acquired by foreign companies. Oxford Ionics was acquired by US-based IonQ for US$1 billion, while Japan’s Terumo acquired OrganOx for US$1.5 billion. Financial technology company Wise also moved its primary stock market listing to the United States.
Sharma argued that Britain’s cautious approach extends beyond the technology sector, affecting public policy, housing development, business expansion and government spending.
He highlighted the changing investment strategies of British pension funds, which held just 25% of their assets in equities in 2025, compared with 43% in 2014. Meanwhile, the share allocated to bonds increased from 38% to 56% over the same period.
According to Sharma, the preference for property and lower-risk investments limits the availability of capital for businesses seeking funding for expansion and innovation. Restrictive planning regulations also make it difficult to build new housing and infrastructure.
He further warned that the country’s expanding welfare commitments could become increasingly difficult to sustain if economic growth remains weak.
Disability benefit claims have reportedly risen to around seven million people, exceeding one in 10 of the population. Among working-age adults, claims have increased by more than 60% since 2019.
British Prime Minister Keir Starmer faced political opposition after proposing £5 billion in welfare savings from a system costing approximately £100 billion annually. The proposal was subsequently reversed following pressure from Labour lawmakers.
The episode also contributed to investor concerns about the government’s ability to implement spending reforms. According to Sharma, UK 10-year government borrowing costs rose from 4.5% to 5.5% during the year, reaching their highest level among Group of Seven economies.
Sharma concluded that while protecting citizens from economic and social risks remains an important government responsibility, excessive caution can discourage investment, weaken growth and place greater pressure on public finances.
He argued that Britain must strike a better balance between protecting its population and encouraging the risk-taking needed to drive innovation, entrepreneurship and long-term prosperity.
– THESTAR
