A total of 11.2 %( 1,570) of start-ups use poor colour combinations and a further 43 % use four or more colours in their logos, creating‘ visual clutter’. The retail and marketing sector is leading the way, where flashy designs often outweigh clarity. For consumers, especially Gen Z, colour signals purpose and values, with younger audiences wanting to know what a colour says about the brand and whether it aligns with their beliefs. Poor choices can confuse or alienate potential customers.

Accessibility is a major concern for user experience: 13 % of start-ups use colour schemes that pose usability risks, with brown and orange( 8 %) the worst combination. Low contrast and red – green clashes can make logos and interfaces unreadable, potentially excluding one in 12 men worldwide who are colour blind. Poor colour choices not only limit readability but can also frustrate users, harm first impressions and reduce overall engagement with a brand online.

Some start-ups get it right: lilac and purple, used by 31 % of start-ups( 4,318), strike a balance between appeal, readability and accessibility. A soft lilac isn’ t just visually pleasing; it can evoke wellness or self-care. Research on colour complexity shows richer variations attract attention, but overly complicated palettes overwhelm the brain. Start-ups that simplify while still showing personality are best positioned to capture attention, communicate values and resonate with customers.

Retail leads the pack with 174 out of 1,237 start-ups( 14.07 %) using poor colour combinations. This is particularly striking given that retail depends so heavily on visual impact and consumer trust. Flashy palettes that sacrifice readability may grab short-term attention but could ultimately damage brand recall.

Even marketing start-ups themselves place second, with over 11.1 %( 134 of 1,207) guilty of poor combinations. The irony here is hard to ignore: the very sector that sells expertise in communication and persuasion is failing at the most basic element of brand design.

Close behind are marketplaces, where 14.81 % of start-ups( 116 out of 783) fall into the‘ bad palette’ category: the highest proportion across all industries analysed. For businesses competing to be the‘ middleman’ between buyers and sellers, unclear or chaotic branding may undermine credibility at a critical firstimpression stage.

Why colour choices matter

Colour is more than aesthetics; it communicates emotion, signals meaning and guides attention. Consider these associations commonly used in branding:

• Blue conveys trust, reliability and calm: popular with tech companies

• Red stimulates urgency and excitement: often used in retail and automotive

• Yellow signals positivity and creativity, making it great for standing out on crowded shelves

• Green evokes health, sustainability, and nature: ideal for food or wellness brands

• Pink can be both playful and romantic, making it especially appealing to younger demographics. �

30 Intelligent SME. tech