‘Small tech firms are being left behind’: Northern tech leaders on funding gaps, talent and what comes next

Bootstrapped growth, pivots, and the challenge of scaling were front of mind for several tech leaders who recently came together to discuss the pressures and opportunities facing founders in the North.

The conversation took place at a Prolific North roundtable on 27 January at Bruntwood SciTech’s No.1 Circle Square in Manchester, bringing together recent winners from the Prolific North Tech Awards 2025 to share their insights on growth, funding, skills, and the future of Northern tech.

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From navigating “volatile funding streams”, identifying new markets to staying agile and balancing commercial growth with social impact, the lively discussion offered a snapshot of what it really takes to grow and scale in today’s tech landscape.

The conversation also revealed growing frustrations, with one founder admitting they feel “let down” by the level of government support available to small tech firms and entrepreneurs.

Attendees:

  • David Prior (chair), Partnerships editor, Prolific North
  • Dominic Bennett, Founder and CEO, Aspire Software Systems
  • David Avis, Director of Client Services, AND Digital
  • Fiona Keppler, Head of Marketing, CHIME 
  • Sara Donnelly, Founder and Director, Beyond Echo PR 
  • Hemant Patel, Founder and CEO, Anumana
  • Jonathan Moran, Director, Better Placed
  • James Barber, CEO and co-founder, Harker

Knowing when to ‘pivot’

Chairing the discussion, David Prior (Prolific North) quizzed leaders on when – and whether – they had to pivot or double down on a chosen model, and how agile their businesses have needed to be amid uncertain times.

For Dominic Bennett (Aspire Software Systems), the company’s first product was largely government-funded, but he explained the business decided to “pivot” away from what he described as a “volatile stream of funding” and diversify into building and selling a B2B product to sustain growth. 

Taking home the trophy for App of the Year, Bennett said his bootstrapped business carried out a “full rebuild” of Aspire last year, incorporating a skill-based learning tool that had “never been done before,” helping boost clients and reclaim market share.

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James Barber (Harker) added that while his business remains focused on its core mission of tackling homelessness with data, it has “reframed” how it markets its product, making it suitable for “almost any charity that supports people” and opening up a “much larger potential market” that is more attractive to investors.

Being “agile” has allowed Harker to respond to government initiatives such as the National Plan to End Homelessness, ensuring its tech helps charities record information and deliver a “much better, more personalised service.”

Sara Donnelly (Beyond Echo PR) highlighted that for her clients, the focus has been less on pivoting and more on identifying new markets and expansion opportunities. 

For Anumana, winner of Small Tech Company of the Year, Hemant Patel described 2025 as a “transformative year.” From just three people 18 months ago, the fully bootstrapped business has grown to 16 through “organic growth”.

A “major pivot” in services – focusing on establishing Anumana as a scalable data and AI consultancy, investing in brand, targeting businesses without senior technical leadership, and bringing in a chief commercial officer – has given the company “resonance” within the boardroom.

Patel said the approach has helped the business to drive revenue growth, secure B Corp certification, and win major clients. “It was a powerful year, but we stayed true to our social mobility ethos,” he explained, noting the need to “continuously stay agile” through “multiple repeated pivots”.

Over at CHIME, the work management solution for network operators that won Tech Innovation of the Year, Fiona Keppler explained the platform launched in June 2025 following five years of trials, with a “breakthrough” moment coming through an industry partnership with UK Power Networks.

Meanwhile, David Avis (AND Digital), winner of the Best Client Support Team award, highlighted the “tough” backdrop facing the digital sector in recent years. Heading into 2025, the business “changed its strategy entirely” by partnering with nearshore providers to reduce costs, making pricing more competitive, which led to more specialist work, ‘doubled revenue’, and improved customer satisfaction.

Funding frustration and the limits of support

Funding proved to be a hot topic, with leaders in the room voicing their frustration at the lack of accessible options for bootstrapped businesses and the constraints that come with external investment.

Bennett (Aspire Software Systems) was adamant that being bootstrapped is more “fun” and allows the business to stay agile, while taking on private equity “takes the fun out of it and everything becomes a process”. 

“You sell yourself to them a little bit. I like the fact that we’re bootstrapped and can kind of do whatever we want if we think it serves our customer” he added.

While there’s “so much emphasis” on venture capital, Patel (Anumana) said smaller bootstrapped businesses have few alternatives. It’s a “constant battle” for founders having to weigh up whether one more deal could give “an extra bit of runway” and “less sleepless nights – but at what cost?” He added: “Bootstrapped businesses feel let down by the government on what’s available to them.”

Several leaders questioned the value of R&D tax credits and the challenge of competing for innovation grants, broadly agreeing the system isn’t well-suited to smaller firms and budding entrepreneurs. 

“I don’t feel the market is set up for smaller businesses to truly succeed,” explained Patel.

Scaling, skills and growth: “I can’t remember the last budget that favoured entrepreneurs”

Jonathan Moran (Better Placed) gave an overview of the current talent landscape, describing the past few years as “challenging” but noting that the second half of 2025 saw an uptick in senior tech hires, creating a “trickle-down effect”.

With more funding cycles reaching Manchester, he said he is “tentatively optimistic” for 2026, citing “greenshoots of recovery” as companies begin hiring again despite economic uncertainty.

Donnelly (Beyond Echo PR) highlighted that the fastest-scaling tech clients are those doubling down on their niche expertise, even if the pool of opportunity might be smaller. She pointed to Greater Manchester Institute of Technology as an example of “plugging a skills gap” in the North and stressed that the real growth opportunity lies in social mobility – training local talent to develop the skills senior hires bring, helping to “keep that talent pool here.””

From T-Levels, which are placement-based with employers, to the value of apprenticeships, there was debate about training initiatives that can sometimes “sell a pipe dream” to entry-level talent while companies “pivot towards senior hires”. There was agreement that more incentives are needed for smaller businesses to take on apprentices, but there needs to be an awareness that there “might not be a job available at the end”.

Barber (Harker) warned that as AI changes the role of software developers, those without a traditional computer science background will “struggle” in the next decade. “There is a political desire to create skills and opportunities for young people, but the system is failing,” he explained. 

“The government needs to ask employers what they want and need rather than imposing levies and implementing things without consultation. It’s a significant problem.”

Keppler (CHIME) noted that developers in start-ups often stay for “years and years,” becoming the only person with knowledge of an app’s “complexity”. As businesses scale, smaller firms often cannot fund training for additional hires.

Barber argued that instead of “ineffective” government-funded schemes, money should instead be spent on creating an environment where investors are “prepared to take risks”.

“If you want to grow, you need capital. You need to bring people into your business. We’re doing exactly that, bringing in junior devs fresh out of university,” he said.

On the obstacles facing leaders in the room when it comes to growth, Patel (Anumana) said the landscape remains “heavily weighted” towards start-up founders. “I feel like I’ve been all in for the last five years. I can’t remember the last budget that favoured small businesses and entrepreneurs.”

The discussion turned to nearshoring and offshoring talent, delving into how rising wages, higher corporation tax, and increased employer NI contributions are making it harder to retain developers in the UK. 

Moran (Better Placed) said many businesses offshore under “duress”, and would prefer to keep opportunities local. Keppler (CHIME) added her company’s niche product requires close collaboration, meaning outsourcing isn’t a viable option. 

Barber (Harker) emphasised the importance of creating skilled jobs locally to reduce the “bigger problem” of a “brain drain” down to London. 

Alongside commercial growth, Patel highlighted how Anumana’s not-for-profit programme is addressing the technical skills gap and helped 90 disadvantaged young people last year. “We never lose sight of our wider societal responsibilities,” he said.

What’s next for Northern founders

Wrapping up the discussion, Prior (Prolific North) asked what’s next for Northern founders and which technologies and shifts they are betting on. There was cautious optimism about what lies ahead from the importance of improved connectivity, growing regional investment, and stronger collaborations between businesses, education providers, and policymakers.

Barber (Harker) said AI has been a “game-changer”, allowing businesses like his to “empower and transform” how charities use data and also highlighted remote working as a major advantage for tech businesses.

But beyond tech, he said he was “excited” by the recent updates about Northern Powerhouse Rail (NPR). “That’s what we need to unlock. If we can deliver that, we will have a true Northern powerhouse, with exciting technical products and great transport,” he explained.

Patel (Anumana) added that tech “won’t stand still” and businesses must embrace it or risk falling behind, while building a strong data foundation will become “increasingly important”.

Avis (AND Digital) said that the focus on AI has now shifted over the past 12 to 18 months, from solving “big, complex problems” to being applied in everyday situations. 

Cybersecurity and AI governance are growing concerns, especially in social housing, healthcare, and education. Keppler (CHIME) warned cybersecurity is “a bigger issue now than ever” and is likely to become the “main hub of jobs” in the future.

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