Louise McCoy is the Commercial Managing Director of Small Business Lending at Start Up Loans, a government-backed programme that launched in 2012 to provide loans and support to new and early-stage UK businesses that may struggle to access finance (up to £25k) elsewhere.
As the results days for both A-Level and GCSE exams fast approach, many young people will be considering their next steps in life. While many will follow the well-trodden path to further or higher education, or indeed go straight into employment, others will be weighing up alternative routes such as apprenticeships. However, for some entrepreneurial young people, starting their own business will be an attractive option to kickstart a career.
In recent years, there has been a noticeable shift in interest among the younger generation towards entrepreneurship, with many aspiring to become the next generation of business owners. A recent study found that 22% of Gen-Z plan to become their own boss in the next year, and 6 in 10 want to achieve that status by the time they are 30*.
The rise of side hustles amongst students and young professionals underscores the entrepreneurial spirit that thrives alongside formal education. The study into Gen-Z entrepreneurialism also found that 63% of those born after 1996 have already tried their hand at a side hustle or small business venture*.
For many young people, the prospect of entrepreneurship and being their own boss is highly appealing. It provides the opportunity for autonomy and personal growth and often to fulfil a dream of being their own boss. 38% of Gen Z said that following their passion is their primary motivation for starting a business*.
However, despite this enthusiasm, young people can face barriers when accessing capital to kickstart their entrepreneurial ventures. Many lenders understandably have firm credit requirements that can be difficult for those without an established financial or employment history to meet.
However, there are alternative funding options that are accessible to young people. Start Up Loans considers a holistic view of business viability, personal affordability alongside credit worthiness, providing a more accessible source of funding for young entrepreneurs. These loans come with the added benefits of fixed interest rates, and mentoring and support, which can be invaluable for those taking their first steps into business ownership.
With these benefits, the programme has proven particularly successful among the 18-24 age bracket. We were delighted to announce at the beginning of the year that Start Up Loans had delivered more than £100 million to applicants that were aged 18-24.
For young people, the opportunity to accumulate real-world business experience early on is highly advantageous. Through entrepreneurship this generation are able to develop practical skills and insights beyond those provided in an academic setting.
One young founder who was supported by a Start Up Loan is 22-year-old Blake Bentley, who operates an American soul food takeaway called The Scran Man.
Blake Bentley, founder of Birmingham-based The Scran Man, commented: “Starting my own business has been an incredible learning curve. It’s taught me resilience, adaptability, and the importance of a clear vision. Every day presents a new challenge, but also an opportunity for me to grow both personally and professionally. Securing a Start Up Loan was fundamental in providing me with the financial means to follow my ambition.”
Small businesses play a crucial role in the economy, driving innovation and creating employment opportunities, and the potential rewards on offer can also be attractive to many young people.
As young people consider their post-results day pathways, the option to start their own business is a compelling alternative for many. For any young individuals drawn to the potentially exciting and rewarding business journey, I would encourage them to explore Start Up Loans as a possible way to realise their ambitions.
