INSIGHTS / Blog

As Head of the Royal Academy of Engineering Enterprise Hub, my team and I have the privilege of supporting some of the UK’s most exciting deep tech entrepreneurs. Through programmes and communities that support deep tech entrepreneurs at every stage of their startup journey, we nurture innovation and accelerate the growth of disruptive spinouts, start-ups and scale-ups.

One of the most consistent challenges our community of start-ups and scale-ups faces is talent acquisition and retention.

The hiring challenge in start-ups

During a recent roundtable discussion, the topic of talent emerged as a critical barrier to growth. It’s no surprise – hiring the right people can make or break a company. For early-stage entrepreneurs, particularly those in deep tech, the challenge is twofold: securing individuals with both technical expertise and the entrepreneurial mindset necessary to thrive in a high-growth environment.

One key issue we see with university spinouts is the transition from researcher to leader. We require Enterprise Fellowship participants to take on the role of CEO or CTO at the start, and the programme is designed specifically to upskill them for this leadership role. It can be a challenging transition, as running a business is a vastly different skill set from developing breakthrough innovations. Finding the right leadership team then becomes crucial yet challenging.

There’s also the assumption that hiring someone from a big-name company automatically means they’ll be the right fit. But what works in a corporate giant doesn’t necessarily translate to the fast-paced, resource-constrained world of a start-up. Sales expertise, for instance, is highly sought after, but a strong salesperson doesn’t always equate to a great CEO. The dynamics of start-up leadership require adaptability, resilience, and a deep understanding of the product and market.

The struggle for technical talent

Deep tech start-ups and scale-ups need highly specialised technical talent – often PhDs in specific fields. However, with increasing visa restrictions, hiring internationally has become more difficult. If the UK isn’t producing enough homegrown talent at this level, and hiring from abroad becomes less accessible, what happens to our pipeline of innovation?

Culture as a retention tool

Another major challenge is retention. Many early-stage companies lack the resources to invest in structured HR and professional development. Without these foundational elements, they risk building teams that lack diversity or fall into the trap of hiring people who simply resemble the founders.

Recognising this, we developed Culture+, a tool designed to help deep tech SME leaders drive growth by shaping their company culture. It’s essentially an outsourced HR support system, guiding founders through building strong, inclusive, and sustainable work environments. Often, culture is an afterthought in fast-growing companies, but it should be a strategic priority from the start, as it can help founders unlock many aspects of their business growth, from customer acquisition to raising investment.

The visibility problem

Despite the exciting opportunities that start-ups offer, there’s still a visibility gap when it comes to attracting young talent. University career fairs are often dominated by large corporations, making it difficult for students to even consider start-ups as a viable career path. Enterprise-focused universities like Imperial, Bristol and Exeter are exceptions, but across the board, we need to do more to embed entrepreneurship into the curriculum and expose students to start-up career paths earlier.

What more can be done?

The broader ecosystem plays a role here. While our Enterprise Hub programmes equip entrepreneurs with leadership skills, the UK could benefit from a more structured approach to talent development and acquisition. Some universities run excellent internship schemes, but there’s no nationwide initiative connecting start-ups with emerging talent in a scalable way.

At the Royal Academy of Engineering, we’re also involved in broader outreach efforts like This Is Engineering, a campaign showcasing the diverse and exciting careers available in engineering. While this focuses on the field as a whole rather than start-ups specifically, it’s a step in the right direction toward inspiring young people to pursue innovative career paths.

Final thoughts

Talent remains one of the biggest hurdles for start-ups and scale-ups. The right people can accelerate growth, while the wrong fit can slow everything down. As a sector, we need to think strategically about how we attract, develop, and retain top talent – whether through better training, more accessible visa routes, or improved visibility of start-up career paths. At the Enterprise Hub, we’re committed to playing our part, but this is a challenge that requires collaboration across the entire ecosystem.

For entrepreneurs out there struggling with talent issues, my advice is to invest in your company culture early, be strategic about hiring, and don’t be afraid to seek support. The right team can take your innovation from an idea to an industry-changing enterprise.

Talent was the focus of one of the roundtable discussions at SETsquared’s Investment Futures event. To get more insights on this topic you can download the report: How do we develop and retain talent within the ecosystem? Plus, lots of other informative content.

Download Investment Futures content