Starting a business is now something almost half of us expect to do in the next 12 months. It sounds incredible – but what we’re witnessing is nothing short of a cultural shift.
The latest research from my company Enterprise Nation found the trend is driven in the UK by Gen Z and millennials with 62 per cent amongst the 18 to 30 age group and with 51 per cent of those aged 31 to 40 saying they are thinking about starting up in the next 12 months.
The annual Start Up Ambition Report, which has been tracking the nation’s appetite to start a business for the last three years, found earning extra cash to keep up with rising costs as well as monetising a skill or hobby (both 33%) were the main drivers for the trend.
The report has seen incremental rises in the nation’s appetite to start a business since it started, but this year’s rise is the highest yet. In 2023, it was 30 per cent moving up to 35 per cent in 2024.
It demonstrates that new generations are approaching the world of work in an entirely new way and see starting a business as a mainstream career option. After all, these are the generations that can expect to work until they are 70.
Indeed, an impressive 36 per cent of the 18 – 24s were motived by doing something they enjoy to boost their income. They are well aware they are going to spend a long time in the world of work so they might as well enjoy it! They are also less likely to be put off by things like the state of the economy or political turmoil, that deter older generations. They are prepared to take the chance and see less barriers to starting something fresh.
Take London finance associate Daniella Conway. The 29-year-old is set to launch her web app TRVLR, in January. It’s the culmination of 12 months’ work including raising angel investment and going through an intensive six month-long accelerator programme – all while holding down a full time job for a city investment company.
Daniella came up with the idea for TRVLR, a travel platform for people who plan and book group trips with their mates, because she needed the service herself and couldn’t find anything close.
The investment has allowed Daniella to work with a development agency and incorporate artificial intelligence into the build, as well as fund a part time social media freelancer to build momentum for launch.
And it’s working, TRVLR already has 1,000 people on its wait list.
Or 32-year-old Vanessa Anderson who came up with a clever digital solution to track her favourite street food vans near her Northamptonshire via her phone and soft launched in March last year.
The commercial director at a Milton Keynes software development firm built Indi Local, a digital app that tracks local food trucks and raises awareness about community events as a side hustle.
Vanessa sought the help of her colleagues at Business Net Solutions, working out how to use Google maps and plug in simple APIs to create an interactive map.
Meanwhile, she set about raising awareness of the business before launch, creating an Instagram account to build a following and positioning Indi Local as a leading food influencer in the area, pre-revenue.
The app uses interactive technology that can basically drop data via a pin on a map that people can access 24/7. The ultimate goal is to charge a subscription fee to traders and event managers so they can upload their own timetable and locations.
Investment from Milton Keynes Investment Group and funding from the UK Shared Prosperity Fund has helped Vanessa towards the costs of tech development time and take on a part time social media employee, who creates engaging content on its Instagram page @indi.local.
But what’s also behind this trend is a decade of wage stagnation – people want to increase their income while doing something they love or are good at. But it’s also about the accessibility of technology and good quality business support that helps people to get started and grow.
While an economic slowdown often does correlate with more people starting a business because of job insecurity or unemployment, the research found that only six per cent said it was because they were worried about losing their job in the next 12 months. In fact, the number saying they wanted to start up their own business in order to supplement part time work or wages from a zero hours contract fell by 19 per cent from 33 per cent in 2024 to nine per cent in 2025.
The research found women were more likely than men to start-up as a side hustle alongside a current job or caring responsibilities (59%) compared to 49 per cent of men. The age group most likely to start as a side hustle were millennials, with those aged 31 – 40 – leading the rest.
The state of the economy was a common worry, but again, it’s least likely to bother the 18 to 24-year-olds (31%) who were most worried by finding funding. They were also the most eager to seek business support. The 51- 64-year-olds were the most concerned about the impact of the economy on starting-up – but also the age group most likely to say they didn’t know what sort of support was available to help.
What comes out loud and clear is that the world of work is changing. Younger generations are taking their career and their earning potential into their own hands. To make that a success, they must reach out to find the support they need to make a real go of it.
We’re ready and willing to help. You can read the Start Up Ambition report here.
