Gen Z’s entrepreneurial dreams threatened by lack of support
Gen Z is leading the country’s entrepreneurial boom, but a lack of professional support could threaten their future as business leaders.
Over 80 per cent of 18 to 24 year olds have engaged in a form of entrepreneurial activity, such as selling products online or having a ‘side hustle’ alongside a full time job, according to analysis by the charity Young Enterprise.
Just 4 per cent of Gen Z said they had no interest in pursuing an entrepreneurial activity, compared to 25 per cent of older generations.
Despite young Brits’ ambition to grow their bank balances, their confidence in the state of entrepreneurship in the UK is subdued, due to increasing financial pressures and barriers to accessing support.
Sarah Porretta, chief executive of Young Enterprise, said: “The UK has no shortage of ambition or creativity.
“However, we also know there are barriers to progress, particularly for young people from disadvantaged backgrounds, without the benefit of family or professional networks.”
Fears and finances
Lacking finances was seen as the most significant barrier for young people, with nearly 50 per cent believing they did not have the savings needed to get started.
Meanwhile over a third were worried that their finances would not last long enough for their ventures to become profitable.
Fears of failure also held four in 10 young people back from making the first step to becoming a business owner, however those who had received support did not share this sentiment.
Nearly 60 per cent of young people confirmed that assistance from other entrepreneurs played the most important role in their success, closely followed by support from family and friends and member organisations.
Similarly, those who received financial help from family or other supporters, credited the money as being crucial in allowing their ambitions to grow.
Yet, nearly one in five reported having limited access to mentors and business networks, with some not being able to access any form of help.
Porretta said: “We must invest in a system that ensures equitable support for young entrepreneurs, whatever their starting point, to ensure that entrepreneurship can be a key driver for social mobility.”
Optimistic for the future
Despite financial gloom, nearly two thirds of young people are optimistic for the future, believing they have better opportunities than previous generations.
Over 60 per cent acknowledged that taking part in work experience during school allowed them to build much needed knowledge on becoming an entrepreneur, while others credited being able to access financial education both online and at school.
Bola Gibson, executive director for responsible business at law firm Foot Anstey, said: “Entrepreneurial thinking is one of the most valuable workplace skills today.
“Young people who demonstrate initiative, creativity and problem-solving help businesses stay agile and competitive.”