Up against a tough job market and growing desire to be their own boss, those in Gen Z are looking for alternative career paths, with starting their own business being a popular option.
KPMG research published late last year highlighted this move away from traditional corporate careers in pursuit of entrepreneurial opportunities, with 42% of Gen Z considering leaving to work in start-ups and 35% weighing up going freelance or becoming self-employed[1]. For younger Gen Zs entering the workforce, the job market remains tough: The ISE released data in 2025 showing a record 140 applications per graduate vacancy[2].
In the last five years Start Up Loans taken out by Gen Z entrepreneurs rose by 132%, from 830 in 2020 to 1,929 in 2025, with annual lending nearly tripling from £7.2m to £21.2m. Five years ago, Gen Z founders received 7.7% of the loans we deliver; by 2025 this had risen to 17%. In the last year alone, over £20m in loans were taken out by young founders. These numbers are telling. Gen Z are setting up businesses and it’s clear that we need a wider ecosystem to help support these ambitions.
One challenge that this generation faces is access to affordable finance and support, given their likely lower levels of savings and shorter track record. Our programme helps tackle that challenge by providing fixed interest rate loans and mentoring We are proud of the work we have done so far to help the younger generation turn their business ideas into reality – we believe entrepreneurship is driven by ideas and effort, not by how old you are.
Louis Watkins, founder of Clear For Men, is a Gen Z Ambassador for Start Up Loans and exemplifies the youthful entrepreneurial spirit, having turned a deeply personal experience into a growing business with a clear social purpose.
He said: “I started Clear For Men in 2021 after struggling with my mental health. I felt lonely, burnt out, and lost a lot of confidence. Skincare reminded me to pause, take a moment, and prioritise myself. I wanted to build a brand that helped men feel more confident in their skin, whilst encouraging conversations around mental health. I wanted to become somewhat of a role model for men, and I believe that by sharing my journey every day, I’m helping people see they’re not alone. Clear For Men is so much more than skincare – we’re breaking the stigma around male mental health, one bottle at a time.
“The funding from Start Up Loans helped me take this from an idea into a real business. Since then, the business has grown and we now partner with independent stockists like The Station in Bridgend, as well as selling online and on social media. I am looking to expand into new retailers like hotels and spas, whilst also working on sustainable packaging innovations and future product launches, including an SPF moisturiser.”
Louis serves as a fantastic example of a young founder who stepped away from the conventional career path to pursue a purpose-driven business he was genuinely passionate about.
Similarly, Harry Gallacher’s journey, reinvigorating his family business, Knockenhair Hospitality, shows the entrepreneurial drive many young people have. Growing up around his grandmother’s catering operation, Harry was exposed to the realities of running a small business from an early age.
He explains: “While I was much too young to help out, I have fond memories of spending my weekends and school holidays pottering about in my gran’s commercial kitchen and getting a taste of how the business worked – as well as trialling the recipes.
“Going to college to study hospitality was the obvious choice for me after finishing school and, following stints working in a couple of local bars and pubs, I felt that the time was right to give the catering business a go.”
“The prep kitchen that my gran had used was still in decent condition, but now that I’m a couple of years into running the business, it feels like a good time to upgrade some of the equipment and increase the size of the space. Setting up on my own at a young age was daunting at times, but it also gave me the confidence to put my own stamp on the business while building on my gran’s legacy.
“It is still very much a family venture, and it is great to be able to get my gran’s advice and also pick up again with some of the regular customers that she catered for years before.”
Now he notes that they are “building business steadily and are currently busier than ever with weddings and corporate events, covering everywhere from Glasgow to Carlisle.”
As Gen Z continues to reshape the business landscape, we believe access to affordable finance and trusted guidance remains essential. Through initiatives such as collaboration with The King’s Trust, Start Up Loans helps young entrepreneurs access not only funding, but the mentoring and confidence needed to turn ideas into viable businesses.
Gen Z is already reshaping the business world, bringing fresh ideas, values and ways of working. As their influence continues to grow, Start Up Loans strives to remain a consistent source of support for young founders, as they look to build and scale their businesses.
[1] https://kpmg.com/uk/en/media/press-releases/2025/10/gen-z-employees-leave-financial-services.html
[2] https://ise.org.uk/knowledge/insights/498/5_trends_you_need_to_know_from_ises_recruitment_survey_2025/
