About Us
The All-Party Parliamentary Group for UK Innovation Startups and SMEs (APPG‑ISS) launched on 18 March 2026 to give startups and SMEs a stronger voice in Westminster. The Group is chaired by Martin Wrigley MP and includes more than 30 cross-party MPs and Peers,
APPG‑ISS aims to identify and address key barriers facing innovative businesses, including access to funding, procurement, regulatory complexity and skills retention. It acts as a bridge between parliamentarians, policymakers and the UK’s innovation-led startups and SMEs, with support from over 50 companies across sectors such as AI, aerospace, defence, engineering, transport and energy.
Key Challenges
Funding constraints
Startup funding in the UK fell to £16.2 billion in 2024, a 35% drop from 2022. Access to venture capital is tighter compared to hubs like San Francisco, leading to a “brain drain” of talent and capital. Access to government funding is characterised by an overtly bureaucratic, costly and time-consuming approach – negotiating a complex political environment between different departments and agencies.
Scaling difficulties
The UK excels at producing innovative ideas but often struggles to scale startups into global organisations, risking becoming an “incubator economy” where ideas are born but economic benefits flow abroad.
Product development challenges
Startups face a race against time and resources to turn ideas into market-ready products. Common issues include limited expertise, lack of advanced tools, and difficulty adapting quickly to market demands.
Regulatory and economic pressures
Rising costs, political uncertainty, and complex regulations make the UK a tougher environment for startups. Inflation and elevated service sector prices continue to squeeze margins.
Talent recruitment, retention and competition
Many founders report stronger investor interest abroad, leading to loss of skilled workers and entrepreneurs to other ecosystems. Competition in sectors like AI, fintech, and green energy is fierce, requiring startups to differentiate quickly.
Market entry barriers
Breaking into established industries is difficult without strong networks or partnerships. Startups often lack the credibility to secure early customers.
Chair of the APPG Martin Wrigley MP meeting Science and Tech Minister Lord Vallance
What we do
The APPG highlights the benefits of innovation to the wider UK economy and the critical role played by startups and SMEs.
Showcases best practice and emerging thinking and development across all sectors acting as a promoter of startup innovation.
Highlight the key challenges facing startups and SMEs and puts forward policy ideas and practical solutions to government and agencies to improve the current environment, including for instance, around government funding and other support.
Provides a strong media voice for innovation startups and SMEs and respond to media enquiries.
Acts as a champion for SMEs and Startups within Parliament and with government.
Hosts a series of events throughout the year involving relevant ministers and other experts helping to make the case for changes in policy.
Our Priorities
The APPG has set out 4 key priorities that it will focus on in the next year - for each area, it will look to bring forward evidence-based practical solutions and policy ideas that will benefit SMEs and Startups.
1. Funding Models & Access to Finance
2. Government Procurement & SME Engagement
3. Better Regulation
4. Championing British Business
Chair of the APPG Martin Wrigley MP meeting Lord Willets, Chair of the Government's Regulatory Innovation Office (RIO)
Supporting the APPG
The APPG’s impact is driven by the strength of its insight. By drawing on expert advice and real-world experience from across the innovation ecosystem, the Group builds a credible, evidence-led voice within Government - one that can effectively champion practical solutions to the challenges facing startups and SMEs.
We welcome the involvement of individuals, companies and organisations that share our ambition to create a more supportive, competitive and innovation-friendly environment for UK businesses.
There are a range of opportunities to engage directly with and support the Group’s work. This includes participation in a structured programme of activity, featuring four formal meetings each year with MPs and Peers in Parliament, alongside a dynamic calendar of events such as parliamentary receptions with ministerial speakers, focused policy roundtables, and targeted networking opportunities with senior decision-makers.
Supporters will play an active role - contributing to the development of policy ideas and recommendations, engaging in meaningful dialogue with policymakers, and helping to bring the realities of scaling a business into the heart of Westminster. There area also opportunities to host visits from MPs and Peers, showcase innovation in practice, and contribute to media and thought leadership activity throughout the year.
If you would be interested in supporting the work of the APPG, get in touch.