- The entrepreneurial gap: Almost two thirds of young people dream of starting their own business, but only 16% manage to take the leap
- Education blind spot: Just 35% of young people in England report having any exposure to Enterprise Education at secondary school
- Business barriers: Obstacles such as financial confidence, marketing expertise, digital skills and lack of role models are extinguishing entrepreneurial spirit
- Regional roulette: Young people in London (40%) are more likely to have a side hustle than anywhere else in the UK, compared to 19% in the East Midlands
A new research paper, released during National Careers Week 2025, calls for enterprise education to be embedded as part of the National Curriculum, to end the ‘frustratingly patchy’ experience across the country and inspire the UK’s youngest entrepreneurs. The study, conducted by small business insurance provider Simply Business and the Federation of Small Businesses (FSB), gives the next generation of small business owners a voice, and provides clear recommendations for how the Government can tap into the potential of young entrepreneurship as a powerful force for the national economy and local communities.
Only around a third (35%) of young people in England say they received business startup guidance or support during their secondary education. The research highlights that youth clubs are stepping up where formal education falls short. Among those who received business support from a youth club, 83% found it useful.
Jasmine Williams, founder of Starfish Virtual Assistance Ltd in Hampshire said “I feel like schools, colleges and universities should encourage young people to build something for themselves rather than working to build something for someone else. I was completely unprepared until I met other business owners who helped me.”
Chloe-Mairead Donnelly, founder of CMD Tutoring in Winsford said “I live in a deprived area, the opportunities for kids are minimal and the schooling isn’t the best. When I was a teenager, I thought entrepreneurship was something I wouldn’t be able to do myself. I was not prepared by the education system at all, the only thing I was taught in school was to write a CV.”
While nearly 60% of young people express an interest in owning a business, only 16% manage to turn this aspiration into reality. Just over half (52%) are motivated by the potential to make money, highlighting the significant number of young people who aspire to create wealth and raise their standard of living. The research also highlights an altruistic streak – with 14% starting or considering starting a business specifically to help their local community. Against a backdrop of high street decline, it’s particularly powerful to see that 11% of young entrepreneurs hope to open a business on the high street in the next five years. This rises to 16% when talking to those who are already selling through online marketplaces.
Young people in London (40%) are more likely to have a side hustle than anywhere else in the UK, compared to 19% in the East Midlands. Young people from lower socio-economic backgrounds (26%) are less likely to have a side hustle compared to those from higher socio-economic backgrounds (32%).
The report reveals a number of key barriers:
- Lack of role models: 15% of current or aspiring entrepreneurs say that seeing other entrepreneurs would boost their confidence, yet over a third have not had any guidance or support from local entrepreneurs or businesses.
- Access to finance and financial acumen: 20% say they have difficulty in accessing finance to run their business, with 7% resorting to payday loans. In response to this precarious financial situation, evidence shows that payday lenders are increasingly using social media to target young people who are often vulnerable to their lack of financial acumen and credit history. 31% of young people who own, or would like to own, a business, don’t know how much funding they’d need in the next 12 months.
- Broader business skills: Almost one in five (19%) of young entrepreneurs say they struggle with knowledge and understanding of marketing, while one in ten (11%) say deciding to employ someone for the first time, such as making financial and legal decisions, is a challenge.
Julie Fisher, UK CEO Simply Business says: “It’s incredible to see the amount of talent, determination and passion bubbling amongst young people in the UK. Every young entrepreneur, regardless of their background or location, deserves nurturing and a chance to succeed.
“At Simply Business, we insure nearly a million small businesses, and we understand the challenges that entrepreneurs face when starting out. Now, it's time for us all to support the next generation of small businesses. We must break down the barriers and unlock the immense potential of this group – a gold mine of enterprise potential awaits knowledge, inspiration, and guidance.”
Tina McKenzie, Policy and Advocacy Chair at the Federation of Small Businesses said “Young entrepreneurs are a crucial part of the economy, driving innovation and reshaping industries in all parts of the UK. This research has delved into the challenges that young business owners currently face and how their success can be built on, making sure they’re equipped with the right tools to succeed. This is the moment for business, government, finance, and the education sector to come together to move the dial. Investing in enterprise education today will empower the next generation of entrepreneurs to act on their ideas, creating opportunities and jobs that will fuel economic growth.”
In response to the findings, the Federation of Small Businesses has tabled a number of recommendations to government, including:
- Embed Enterprise Education in the National Curriculum, through a range of activities like entrepreneurship competitions, careers talks from local businesses and internal fundraising.
- Support schools, colleges, and employers to guarantee two weeks' worth of mandatory work experience for every young person.
- Make it easier and more flexible for local businesses to engage with schools - many entrepreneurs, including FSB members, want to engage with education institutions, but don’t know how to access schools or colleges
- Create a Side Hustle Allowance – double the tax-free trading allowance, which has been frozen for over seven years, to reflect and encourage young entrepreneurship.
- Promote relevant free guidance and advice for young entrepreneurs and influencers using social media platforms and online marketplaces, with efforts being led by The Competition and Markets Authority and the Advertising Standards Authority.
The full list of policy recommendations can be found in the report.
Notes to editors
Methodology
The Generation Entrepreneur Report is comprised of the findings of a survey conducted using an online interview administered to members of the YouGov Plc UK panel of 2.5 million+ individuals who have agreed to take part in surveys. Emails were sent to panellists selected at random from the base sample. The email invited 18-34 year olds to take part in a survey. The survey was in the field from 4-25 June 2024 and was completed by a total of 2,079 people aged 18-34.
The responding sample is weighted to the profile of the sample definition to provide a representative reporting sample. The profile is normally derived from census data or, if not available from the census, from industry accepted data.
Two focus groups and eleven semi-structured interviews took place between July and November 2024. The focus groups took place via Zoom and interviews took place over Microsoft Teams and phone with young people from across the United Kingdom. We purposefully drew them from a variety of regions and sectors.