Young Brits are poised for an entrepreneurship boom which could double the number of businesses operating in the UK.
A growing “side-hustle” culture is driving young adults towards entrepreneurship with 67 per cent of 18-34 year-olds interested in founding a business, according to a new report by financial services firm Block.
But young Brits’ appetite for enterprise comes as business confidence plummets to its lowest level in over five years, and with firms shedding staff at the fastest level since February.
One in ten people want to start a new business in the next year, according to the report. If all of these Brits were to become founders, the number of UK firms would almost double.
Young people are driving an entrepreneurship culture in the UK, with 15 per cent of Brits already running a “side hustle” alongside other work and 67 per cent of 18-34 year-olds considering working for themselves.
Productivity boost would pay dividends
But traditional finance is blocking these aspiring entrepreneurs from starting businesses, the report claims, with 50,000 small firms being denied loans each year to an economic loss of £4bn.
John O’Beirne, CEO of payment solutions firm Squareup International, said: “The ambition to start and grow businesses is there, but many entrepreneurs still find the financial system stacked against them.
“Access to fairer and more flexible funding provides entrepreneurs with the freedom to start and scale their businesses, manage cash flow, and invest in growth.”
Rich Bayer, CEO of payment service Clearpay, said small businesses are on the brink of contributing billions to the economy.
He said: “If just an additional 1% of SMEs were able to boost their productivity to the point where revenue was growing faster than headcount, it would contribute an additional £24.6 billion to the UK economy each year.”
Last week the Treasury launched its “entrepreneurship prospectus,” pledging to offer tax relief to growing firms and invest in research to boost start-ups.
Chancellor Rachel Reeves said: “We are shifting the centre of gravity back towards ambition by backing the founders and innovators who test new ideas, build new products, and create the companies that will drive the UK’s future prosperity.”
By Felix Armstrong