A rising number of young people in Britain are choosing to
ignore the traditional employment route and start their own
business. That's according to a study of 160,000 of Britain's small
businesses measured over the last three years.
Small business insurance broker, Simply
Business, compared data from 2007 to 2010 and reported a 6.5%
increase in business owners aged 25 to 34. Regional changes were
even more marked. London saw a 14% increase in business owners aged
34 and under; while Scotland and the North East saw an 11%
increase.
Jason Stockwood, CEO of Simply
Business, said: "This data shows that young people are
adapting to a challenging employment landscape by taking their
destiny in to their own hands and starting a business.
It's undoubtedly good to see more young people deciding to start
a business rather than perhaps seek employment. Not just in light
of the recent unemployment statistics - but also the
ever-increasing cost of going to university.
In fact, people aged 18 to 25 seem to be coming to much the same
conclusion. The growth in this age bracket, according to the
research, is 4.2%. By comparison, the percentage of 45 to 54 year
olds starting a business has fallen by 3.6%.
And Londoners are leading the pack. This pattern of growth has
been seen in every region of the country - but it's most pronounced
in London. The Capital saw a 14% increase in owners aged under 34
over the last three years, and a decrease of 11% in owners aged
between 35- 64.
Following this week's Budget, could things get even better for
potential entrepreneurs? Stockwood certainly seems to think so:
"More recently we were pleased to see the Budget announcements
taking steps to support our budding entrepreneurs.
"We're encouraged by the introduction of a 'regulation holiday'
for businesses in their early years, as new firms need nurture and
support in their early years to help them go on to become
successful businesses and employers of the future. Similarly the
introduction of 21 Enterprise Zones also provides a real
opportunity for encouraging start ups."
Of course, Smarta has been following the Budget mercilessly this
week. Have a look at our round
up of the Chancellor's announcements and the feedback from the business community.