In classrooms across the country, students are already thinking like entrepreneurs – spotting problems, imagining new solutions, and exploring purpose-driven paths.
They’re approaching the world creatively, socially and digitally – dreaming up side hustles, start-ups and social ventures. But without the right support, the leap from ambition to action too often stalls.
The appetite is there. What’s missing is the infrastructure.
Entrepreneurship has long been a driving force behind innovation, job creation and local resilience. And in the face of rising unemployment and sluggish productivity, small business ownership could be one of the most powerful ways to revitalise our economy – and our communities.
In fact, small and medium-sized enterprises (SMEs) already form the backbone of the UK economy, making up over 99% of all businesses and providing around 60% of private sector jobs in 2024 – proof that nurturing new entrepreneurs is far more than a nice-to-have, it’s essential for national growth and resilience.
According to the Generation Entrepreneur Report – new research from Simply Business and the Federation of Small Businesses (FSB) – 58% of young adults aged 18 to 34 want to start their own business. But only 16% have actually done it.
The research points to a clear disconnect between aspiration and action – and the barriers that stop many young people from turning business ideas into reality. From gaps in education to access to funding and a lack of relatable role models, the current system is falling short. But there are clear solutions we can implement to close this gap.
Entrepreneurship education is missing from the curriculum
One of the biggest barriers starts in the classroom. Only 35% of young people in England say they received any education or guidance on how to start a business while at school – and even fewer girls were given the tools to consider entrepreneurship as a viable path. That’s not just a missed opportunity for individuals; it’s a long-term threat to the UK economy.
“The skills entrepreneurship fosters will only set the next generation up for success, making our communities even richer,” says Julie Fisher, CEO of Simply Business, one of the UK’s largest business insurance providers. “But this message is struggling to reach young people during career conversations and in the classroom.”
Julie believes we need to move away from rigid career expectations and open up more young minds to the idea that entrepreneurship is not only possible but practical.
“There’s a growing need for traditional career paths to be redefined. Recognising the potential of entrepreneurship could be instrumental to the future of our economy. A joined-up effort from educators, businesses, policymakers and local communities is essential.”
Access to finance is too hard – especially for small loans
Even when young people are ready to take the leap, another major hurdle stands in the way: access to finance.
While ambition is high, one in five say they struggle to secure funding. Early-stage businesses often don’t need large investments – many prefer loans under £2,000 – but face disproportionate levels of bureaucracy to access them. This means promising ideas can stall before they even get started.
A more youth-friendly funding ecosystem would look very different: one that streamlines access to microloans, supports new founders with mentorship and peer networks, and raises awareness of non-traditional finance options like community funding, mission-driven grants and digital-first platforms designed with younger users in mind.
“Kick-starting a side hustle or small business can be expensive, and grants and loans can be instrumental to success – providing investment into everything from equipment and staff to a business premises,” says Julie. “But when it comes to accessing finance, many report difficulties in knowing where to find the right help.
“In fact, a recent survey of 1,000 Simply Business customers found that 15% of small business owners believe easier access to funding and grants was the key action the government could take to better support SMEs.”
Representation matters: young people need to see who they can become
Beyond money and education, another barrier runs deeper: representation. Only 8% of young entrepreneurs say they’ve been inspired by a business role model. That stat reveals a problem not just with visibility, but with whose stories are being told – and who is made to feel that entrepreneurship is ‘for them’.
For women, disabled people, and young people from underrepresented ethnic or regional backgrounds, the lack of relatable role models can make business ownership feel like something other people do.
To change that, we need to spotlight a broader and more diverse range of entrepreneurs – not just the tech unicorns or high-profile CEOs, but grassroots business owners, creative entrepreneurs and social founders building sustainable ventures in their communities.
If young people can see it, they’re more likely to believe they can be it.
“There is a goldmine of young enterprise potential across the country. Unfortunately, disparities exist in the levels of encouragement and support that young people receive,” explains Julie. “Enterprise education as part of the National Curriculum could provide young people with an understanding of how to start, manage and grow a business.
“Role models also have a critical part to play. There is no silver bullet for this spectrum of issues. It relies on a collective recognition of the work that needs to be done, and close collaboration across education, business, policymakers and local communities.”
With the right investment in enterprise education, inclusive visibility, and more accessible finance, we could unlock a new generation of entrepreneurs – ones who are ready to reshape industries and improve communities from the ground up.
