'The UK's Got the Talent – Now We Need the Tools': Why start-ups like LAMA want smarter government support

By Entrepreneur UK Staff

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LAMA
Liam Allen, co-founder of British food start-up LAMA

For Liam Allen, co-founder of British food start-up LAMA, innovation doesn't have to be bland. "We're on a mission to bring fun and unique healthy snacks from around the world to market," he says, proudly unveiling the brand's first launch – a dried fruit snack line called Datekin. But like many early-stage founders in the UK, Allen is clear-eyed about the challenges that come with bold ideas and limited resources.

"Every start-up business faces challenges," he says. "But, generally, there are several steps the UK Government could take to help businesses grow - for example, offering low-interest rate loans, expanding grant programmes, or improving access to venture capital by potentially using co-investment schemes."

Access to capital is a common barrier, particularly for consumer-facing brands looking to scale. "Lack of initial investment is what holds many start-ups back," Allen says. "Helping this way could really push them forward."

While government programmes like R&D tax credits have been a cornerstone of the UK's start-up ecosystem, Allen believes they need to evolve to remain fit for purpose. "Tax credit for research and development will really help start-ups over time as it enables them to re-invest in their company and bring out new products," he explains. But the current system isn't always founder-friendly. "The key is to make these tax credits accessible for young businesses, so making the claims process as simple as possible would help," he adds. "Also, speeding up the amount of time it takes to process these claims will keep cash flow looking healthy — any delays can cause start-ups issues."

For LAMA, navigating the UK's food and retail ecosystem presented its own set of hurdles — especially when trying to marry brand values with compliance. "As a new food brand entering the retail space, we had to navigate lots of regulatory requirements, and this was a critical challenge," Allen recalls.

"Ensuring compliance while maintaining a strong brand aesthetic and sustainability goals required adhering to strict labelling regulations — from ingredient transparency to nutritional claims — which had to meticulously align with UK/EU food labelling laws."

It's this kind of red tape that Allen believes could be improved with smarter streamlining. "The best way to help start-ups grow more quickly is by streamlining regulation and compliance," he says.

And when asked what would truly make the UK a better place for innovation? Allen's answer is clear: invest in infrastructure and people. "We live in a digital world, so improving infrastructure with high-speed internet and 5G coverage across the country will enable start-ups to scale," he says. "The Government could also provide more support for apprenticeship schemes — enabling businesses to hire more young people into the workplace."

As LAMA begins its journey from niche snack newcomer to household name, Allen remains optimistic — but realistic — about the path ahead. "The UK's got the talent," he says. "Now we just need the tools."

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