UK set for youth business boom
The UK could be on the brink of a youth
business boom according to a new report by The Prince’s Trust and
The Royal Bank of Scotland Group.
A new report by The Prince's Trust and RBS has revealed
that thirty per cent of young people believe they will be
self-employed in the future, while one in four expect to be their
own boss within the next five years.
The research has been released as part of the celebrations
surrounding the 30th anniversary of The
Prince's Trust Enterprise programme.
While only five per cent of young people in the UK are
currently self-employed, more than a quarter claim they are
“increasingly” thinking of setting up in business.
In addition, the research revealed that more than one in four
unemployed young people would rather try to set up their own
business than continue to job-seek in today’s competitive market.
Official figures from the Office for National Statistics show the
number of self-employed young people has already risen by 71,000
since the start of the economic crisis.
Martina Milburn, Chief Executive of The Prince’s Trust,
This research reveals an increasingly
entrepreneurial mood among young people. Five years on from the
start of the recession, youth unemployment remains high and many
are seeing self-employment as a way to break the cycle of
“Setting up in business can be tough – but at The Prince’s Trust
we have a 30-year track record of helping disadvantaged young
people succeed in work and self-employment, no matter what their
background. It is critical we nurture young people’s passion for
business and invest in the next generation.”
Forty-three per cent of young people have already made money
from entrepreneurial activity such as selling a product they have
made or working on a freelance basis, and more than half hope to do
so in the future.
Professor Michael Hay, Professor of Management Practice in
Strategy and Entrepreneurship at London Business School, said:
“Traditionally Britain has lagged behind other countries in terms
of the number of young entrepreneurs, but today’s report suggests
that young people’s attitudes to self-employment are changing.
It is important that the next generation of
young entrepreneurs get the support they need from organisations
like The Prince’s Trust. In the current climate, helping young
people to beat unemployment and set up businesses that employ other
people can only be a good thing for the UK economy.
While 42% of young people have considered setting up in
business, many are being held back due to worries about funding or
not having enough support. More than half of young people say that
not having enough money would prevent them from setting up in
business, while a third claim that having a mentor would make them
more likely to consider self-employment.
Chris Sullivan, Chief Executive of RBS's Corporate Banking
RBS has, for over a decade, actively supported
efforts targeted towards young, unemployed people with a commercial
idea, and the drive and ambition to start-up their own
He continued, "It is of particular importance in these tough
economic times, to provide support for some of the most
disadvantaged young people in the country. Through our ongoing
partnership with The Prince's Trust we’ve seen first-hand the
The research also shows how 44% of self-employed young people
feel more confident about their business than this time last year,
while 40% expect to see business improve in the next six
The Prince’s Trust is celebrating 30
years of setting up young people in business through its
The scheme has helped 80,000 young entrepreneurs to date with
support from funders such as RBS.
Want to start a business?
If you have a business idea, and are aged 18-30 (16 - 25 for
Explore Enterprise in Scotland) and unemployed, the Enterprise
Programme could be for you.
Find out how we can help
Celebrating 30 years of Enterprise
Click to explore Enterprise Avenue -
celebrating 30 years of creating young entrepreneurs.
Supported by RBS
The Royal Bank of Scotland Group (RBS) is the largest corporate
supporter of The Prince's Trust Enterprise programme, providing
disadvantaged young people with access to funding and mentor
support to enable them to start up in business.