FSB and Simply Business call for urgent change to level up opportunities in all parts of the UK and fuel economic growth
A new research paper, released during National Careers Week 2025, calls for enterprise education to be embedded as part of the National Curriculum, to end the ‘frustratingly patchy’ experience across the country and inspire young entrepreneurs throughout the North East.
The study, conducted by small business insurance provider Simply Business and the Federation of Small Businesses (FSB), gives the next generation of small business owners a voice, and provides clear recommendations for how the Government can tap into the potential of young entrepreneurship as a powerful force for the national economy and local communities.
Only around a third (35%) of young people in England say they received business startup guidance or support during their secondary education. The research highlights that youth clubs are stepping up where formal education falls short. Among those who received business support from a youth club, 83% found it useful.
While nearly 60% of young people nationally express an interest in owning a business, only 12% manage to turn this aspiration into reality in the North East, lower than the national average (16%).
Just over half (52%) are motivated by the potential to make money, highlighting the significant number of young people who aspire to create wealth and raise their standard of living.
The research also highlights an altruistic streak – with 11% in region starting or considering starting a business specifically to help their local community, again lower than the national average (14%). Against a backdrop of high street decline, it’s particularly powerful to see that 11% of young entrepreneurs hope to open a business on the high street in the next five years.
The research found that 18% of young people in region have a side hustle, against a national average of 28%. Nationally, young people from lower socio-economic backgrounds (26%) are less likely to have a side hustle compared to those from higher socio-economic backgrounds (32%).
The report reveals a number of key barriers:
- Lack of role models: 12% of current or aspiring entrepreneurs in region say that seeing other entrepreneurs would boost their confidence, yet over a third have not had any guidance or support from local entrepreneurs or businesses.
- Access to finance and financial acumen: 20% of young people across the UK say they have difficulty in accessing finance to run their business, with 7% resorting to payday loans. In response to this precarious financial situation, 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. 31% of young people who own, or would like to own, a business, don’t know how much funding they’d need in the next 12 months.
- Broader business skills: Almost one in five (19%) of young entrepreneurs say they struggle with knowledge and understanding of marketing, while one in ten (11%) say deciding to employ someone for the first time, such as making financial and legal decisions, is a challenge.
Julie Fisher, UK CEO Simply Business says: “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.
“At Simply Business, we insure nearly a million small businesses, and we understand the challenges that entrepreneurs face when starting out. Now, it’s time for us all to support the next generation of small businesses. We must break down the barriers and unlock the immense potential of this group – a gold mine of enterprise potential awaits knowledge, inspiration, and guidance.”
Tina McKenzie, Policy and Advocacy Chair at the Federation of Small Businesses said “Young entrepreneurs are a crucial part of the economy, driving innovation and reshaping industries in all parts of the UK. This research has delved into the challenges that young business owners currently face and how their success can be built on, making sure they’re equipped with the right tools to succeed. This is the moment for business, government, finance, and the education sector to come together to move the dial. Investing in enterprise education today will empower the next generation of entrepreneurs to act on their ideas, creating opportunities and jobs that will fuel economic growth.”
In response to the findings, the Federation of Small Businesses has tabled a number of recommendations to government, including:
The full list of policy recommendations can be found in the report here: https://www.simplybusiness.co.uk/resources/gen-entrepreneur-report-2025/ |