Gen Z is at the forefront of the UK’s entrepreneurial surge, yet a lack of professional support may jeopardise their future as business leaders.
Analysis by the charity Young Enterprise reveals that over 80% of 18 to 24-year-olds have participated in entrepreneurial activities, such as selling products online or maintaining a ‘side hustle’ alongside full-time employment. In stark contrast, only 4% of Gen Z express no interest in entrepreneurship, compared to 25% of older generations.
Despite their ambition to enhance their financial standing, young Britons are less confident about the entrepreneurial climate in the UK, attributed to mounting financial pressures and obstacles in accessing support. Sarah Porretta, Chief Executive of Young Enterprise, noted, “The UK has no shortage of ambition or creativity. However, we also know there are barriers to progress, particularly for young people from disadvantaged backgrounds, without the benefit of family or professional networks.”
Financial constraints are perceived as the most significant barrier, with nearly 50% of young people believing they lack the savings necessary to initiate their ventures. Over a third are concerned that their finances may not sustain them until their businesses become profitable. Fear of failure similarly deters 40% from embarking on entrepreneurial journeys, though those who received support did not share this apprehension.
Almost 60% of young people reported that assistance from other entrepreneurs was crucial to their success, followed closely by support from family, friends, and member organisations. Financial backing from family or other supporters was also deemed vital for nurturing their ambitions. Nevertheless, nearly one in five reported limited access to mentors and business networks, with some unable to secure any form of assistance. Porretta emphasised the need for investment in a system that provides equitable support for young entrepreneurs, regardless of their starting point, to ensure entrepreneurship drives social mobility.
