Young People

A third of Britain’s young people looking to start a business are turned off by lack of access to finance, business skills and contacts

A new study – commissioned by the charity New Entrepreneurs Foundation – shows a third of British young people struggling to kick off their entrepreneurial dreams due to poor access to finance, business skills and contacts.

The report, gathered by YouGov, looks into Britain’s youth entrepreneurship and the barriers faced by would-be entrepreneurs.

The internet-based market research firm used responses from 2,171 UK professionals to gather its data, of which 230 were adults aged 18 to 24.

YouGov found that 30% of young people were thinking of setting up their own ventures with 61%, of the same group, citing lack of capital as the ‘biggest block to progressing their business aspirations.’

The findings also revealed that young founders are increasingly taking alternative routes to set up their business – 16% said they have done an apprenticeship, 12% said they have used University business society membership, 25% were getting advice from family and 6% were using accelerators / incubators.

Neeta Patel, CEO of the New Entrepreneurs Foundation, said, “Even in the turbulent times we live in, it is good to see that young people are enthusiastic about creating a business. However it is clear to see that they are stumbling before they can even get a chance to begin.

“While 30% of young adults are writing business plans and almost 10% suggest they will start a business in the year ahead, it is the lack of access to finance, business skills and networks that is holding them back.”

The New Entrepreneurs Foundation helps young people develop into future entrepreneurial leaders through its mentoring and training programmes.

The newly released survey coincides with the charity’s 5th year anniversary in supporting young founders in the UK.