While researching historic levels of youth employment, I was struck by two facts: historic rates have usually hovered between 10-15%, and the current level is even higher than during the pandemic. Many factors play a part, including the rise of artificial intelligence, which is replacing entry-level jobs.
Why entrepreneurship matters for young people in the UK
With the workplace changing so rapidly, we have an opportunity to reshape young people’s awareness of entrepreneurship as a career. A recent survey found that more than half of young Britons could not name a single entrepreneur, a shocking gap that must be closed if we are to nurture the business leaders of tomorrow.
At Start Up Loans, part of the British Business Bank, we aim to help young people see entrepreneurship as a realistic and attractive path. Each new venture adds to economic growth and creates long-term benefits for the wider economy.
How Start Up Loans supports young entrepreneurs
Start Up Loans has been supporting under-25s since its launch in 2012, when it was created specifically for younger founders. Today that cohort accounts for around 17,000 loans, 13% of the programme, worth £131m. Notably, 28% of these borrowers are NEETs (not in education, employment or training) when they receive their loan.
Over the next twelve months we will focus our efforts on this demographic, offering not only finance but also wraparound support such as mentorship, practical guides and access to a network of experienced entrepreneurs.
The benefits and challenges of starting a business young
Being a young entrepreneur, whether full-time or as a side hustle, builds commercial skills including customer service, payment handling and marketing that are valuable in any career. Many cite the appeal of being their own boss, a desire that comes up time and again in conversations with our Start Up Loans Ambassadors.
However, entrepreneurship is not without difficulty. Long hours, unexpected problems, high responsibility and the risk of financial loss are real. Proper planning, a solid mentor and the right support can mitigate these challenges, but they remain part of the journey.
Researching the market is essential. Creating a minimum viable product or starting as a side hustle can test demand before committing full-time resources.
I spoke to Louis Watkins, our Start Up Loans Gen Z Ambassador and founder of Clear For Men. He advised: “Ask as many questions as possible, be prepared to fail, and fail fast and often. Some livestreams didn’t go well at first, but I kept going and they improved. Keep going and learn from those around you.”
Richard Branson, the entrepreneur most frequently named in the same survey, once said: “One of the best things about starting off in business is you don’t know all the perils, so you’ll try things that the experts tell you you’re completely mad to try.”
Our wraparound support includes access to mentors and resources such as the Essential Guide to Starting a Business, designed to help young founders navigate their first steps. While entrepreneurship isn’t for everyone, the current job market makes it a compelling alternative worth exploring.
About the author
Louise McCoy is a spokesperson for Start Up Loans, part of the British Business Bank. She champions entrepreneurship and self-employment among young people in the UK, sharing insights and practical resources to help them launch and grow their own businesses. Start Up Loans has supported over 17,000 under-25 founders with £131m in funding since 2012.
