Government told to improve education for young entrepreneurs
A new report has exposed the education system’s failure to boost business knowledge among aspiring entrepreneurs.
The Federation of Small Businesses (FSB) and Simply Business have called on the Government to incorporate business education into the national curriculum, in a bid to unlock “a gold mine of enterprise potential”.
The study revealed just a third of young people in England had received business startup advice or support during their secondary education.
Despite education frustrations, almost 60 per cent of young people nationally still expressed interest in owning a business.
In London, just three in ten young entrepreneurs were able to turn their aspirations into reality.
The FSB’s Advisory Chair Tina McKenzie said: “This is the moment for business, government, finance, and the education sector to come together to move the dial”.
This comes as Chancellor Rachel Reeves looks to unleash growth across the UK, with the research suggesting improved business literacy could be a pathway.
Payday lenders ‘target’ young people
Where schools have failed, many young people have received support from youth clubs plugging the gap.
83 per cent of those who engaged with youth clubs for business education found it to be useful.
The report cited three key barriers to young entrepreneurship, which included a lack of role models, access to finance and financial acumen and broader business skills.
Difficulties with financial accessibility led to seven per cent of respondents resorting to payday loans.
The report says “evidence shows that payday lenders are increasingly using social media to target young people who are often vulnerable to their lack of financial acumen and credit history.”
One in five respondents said they struggled with knowledge and understanding of marketing, while one in ten said deciding to employ someone for the first time marked a challenge.
Amidst nationwide high-street decline, 17 per cent of young entrepreneurs aim to open a business on the high street in the next five years.
This sheds a glimmer of hope on the exodus plaguing Britain’s high-streets, with the likes of retail bank Santander reevaluating its UK presence, as first reported by the Financial Times.
Nearly a fifth of young people in London said they were considering or had already started a business which would specifically help their local community.
Julie Fisher, chief executive of Simply Business, said: “It’s incredible to see the amount of talent, determination and passion bubbling amongst young people in the UK.
“Every young entrepreneur, regardless of their background or location, deserves nurturing and a chance to succeed.”