More young people are venturing into entrepreneurship and they need mummy's help for money, Worldpay’s new data reveals
The business world is constantly evolving with new ideas being hatched all the time. So it shouldn’t surprise anyone that the even younger people are getting interested in launching their own businesses. But as they do, the so-called bank of mum and dad is becoming a large factor among startups, reveals new research by Worldpay, a payments technology company.
The data from over 1,000 interviews from senior decision makers by Worldpay. revealed that 43% of millennial business leaders think starting a business is a better investment than going to university. That number was over a third of the grand total of SME owners polled by the business. This is in line with previous research from Informi, the SME consultancy, which found that 50% of those aged between 23 and 38 would like to run a company of their own.
But as the amount of younger people venturing into entrepreneurialism increases, so does the number of entrepreneurs asking their parents for financial support. Worldpay found that parents are an integral part in starting a small business with one in ten entrepreneurs getting startup funding from family members. The researchers also found that those below the age of 35 were two times more likely to ask help from family than their older peers were.
Commenting on the new data, Steve Newton, executive vice president of UK and Europe at Worldpay, said: “With the UK startup scene defying economic uncertainty and growing over 5% this year, it’s clear that the UK has a strong entrepreneurial spirit. The challenge is to ensure that we’re creating the best environment and enabling access to the right support and tools for small businesses to succeed in the long term. While it’s great if a business can be a family affair, not everyone will be in a position where this is possible. It’s imperative that aspiring entrepreneurs can access startup and working capital regardless of their background.”
It is evident that the UK’s youth is eager to adopt the entrepreneurial lifestyle but their family situation shouldn’t be an obstacle for them to realise their dreams.