The majority of people from Gen Z say they are interested in starting their own small business, according to new joint research from Small Business Saturday UK and American Express, despite many facing significant barriers to entrepreneurship.
The survey found that 71 per cent of those aged 18 to 24-years-old are interested in setting up their own business, with close to a third (31 per cent) of this number saying that business ownership was a closely held dream.
Retail, hospitality and beauty were identified as the top sectors that young people are seeking to start their businesses in. 17 per cent said they were interested in running a bookshop, while 15 per cent wanted to open bakeries, spas or pet care businesses.
Organisers from the Small Business Saturday campaign said that the enthusiasm for entrepreneurship among young people presented a major economic opportunity to grow the UK’s next generation of businesses.
Gen Z were found to be particularly keen to run their own businesses compared to other generations, with only 56 per cent of 35-44-year-olds interested in entrepreneurship and just 27 per cent of 45-54-year-olds.
The study follows separate Amex research released earlier this year, which found that many in the Gen Z bracket feel they already have the key skills required to set up a business. 87 per cent are confident in their collaboration skills, 82 per cent feel they possess innovative thinking and 80 per cent believe they have strong leadership skills.
However, despite this confidence, campaigners have pointed out the number of barriers that young people face to entrepreneurship, particularly for those from under-represented backgrounds and those with a lack of access to business networks, finance and role models.
Michelle Ovens CBE, Director of Small Business Saturday UK, commented: “It is extremely encouraging to see this trend of entrepreneurial ambition among young people, as they have huge potential for innovation and could power the UK’s economic growth through starting their own businesses.”
Dan Edelman, UK General Manager, Merchant Services at American Express, added: “Gen Z’s appetite to set up by themselves is heartening as they are vital to ensuring small businesses continue to thrive into the future. Through our continued support of Small Business Saturday, we’re proud to shine a spotlight on the contribution independent businesses make across the UK, and the dedicated entrepreneurs running them.”
Small Business Saturday UK has been operating for a decade and is the UK’s most successful small business campaign. The campaign, which takes place on December 6th this year, celebrates small businesses and encourages consumers to support small businesses in their communities.
Michelle Ovens said: “Small Business Saturday is all about supporting our nation’s fabulous small businesses. During the campaign season and beyond, [we] need to empower everyone on their journey in entrepreneurship, no matter their age or circumstances.”