Entrepreneurship is no longer a niche pursuit for young people

Entrepreneurship is no longer a pursuit reserved for the young, but an increasingly viable career path for the current generation grappling with traditional employment, asserts Steve Hare. The government has acknowledged the difficulty young people face in breaking into the conventional career ladder and has introduced several measures to address this issue.

However, it would be prudent for them to acknowledge that entrepreneurship is a legitimate alternative route into the workforce, one that young people are increasingly embracing independently. The Chancellor's Autumn Budget introduced encouraging provisions for young entrepreneurs in England. The introduction of a Young Entrepreneurs Allowance aims to cover living expenses for those in their inaugural year of business, signaling the government's support for entrepreneurial endeavors.

Nevertheless, there is room for improvement. Young individuals require not only financial assistance but also mentoring with practical guidance, or a youth version of 'Help to Grow' that can equip them with the digital skills and AI capabilities necessary to transform an idea into a viable business. Supporting young people into employment through apprenticeships, graduate schemes, and other avenues remains crucial.

Nonetheless, equal emphasis should be placed on those who aspire to create their own jobs. Launching a business is a legitimate route into the workforce, and thriving businesses can subsequently generate jobs for others. In fact, analysis from economics consultancy Cebr suggests that if even five percent of these young people transition into self-employment, it could generate nearly £4 billion in additional economic value by 2029.

Youth self-employment is at a record high Our research underscores that young people are no longer idle. Youth self-employment has reached its highest level in a decade, with 27,500 more individuals under 25 working for themselves compared to 2022. Technology, especially AI, has the potential to make this route more accessible and affordable by providing access to capabilities that previously required specialized expertise.

For instance, Olivia Regan, 23, launched her Solihull-based cleaning company in 2024 after completing her education without obtaining GCSEs. Her business, now generating monthly revenues of £10,000, employs a network of freelancers and leverages AI tools for pricing, marketing, and customer identification. Christina Davis, 25, founder of a Newcastle-based growth marketing business, adopted a different approach.

After qualifying as a doctor, she developed an online following during the pandemic. She transitioned to running her marketing business full-time in January 2026 and within three months, had matched her previous salary. Christina now serves clients worldwide, utilizing AI for lead identification and marketing performance analysis.

While their businesses differ, both exemplify what young people can accomplish when given the opportunity to realize their ideas and pursue their ambitions. Technology can facilitate the process of starting and managing a business, but the drive and hard work emanate from the individual. It is evident that a new generation is prepared to translate its ideas and ambition into businesses.

The challenge now is to bolster more young people with the confidence and support to pursue the self-employment route and to recognize entrepreneurship as a critical component of addressing the UK's youth employment crisis. Steve Hare, CEO of Sage, penned this perspective.