Small Business Matters | A Blog for UK Small Businesses

The undiscovered population

Recent figures from the Princes Trust Youth Index 2010 did not deliver the most optimistic news for today’s young unemployed Brits who are being dubbed as ‘the lost generation’.

According to the research, one in five young people, that’s 927,000 of 16-24 year olds, are currently out of work in the UK.

The Princes Trust fears that the long terms effects could be significant and that the UK risks losing out on the next generation of doctors, scientists and entrepreneurs if today’s young people don’t manage to get started on fulfilling their career ambitions soon.

Rather than looking at this group as the ‘lost generation’, they should instead be seen as the ‘undiscovered generation’, who should be fostered and encouraged to become the UK’s next cohort of young entrepreneurs and eventual business tycoons. Movements such as the Princes Trust Undiscovered campaign designed to help this group and the Make Your Mark campaign aimed at increasing entrepreneurial behaviour among young people are great ways of encouraging this.

Small business remains the back bone of the British economy, however more support is clearly needed to harness the younger generation of entrepreneurs who are hungry for opportunity and success.

Are British people ready to set up their own business?

Last month, Intuit asked YouGov to survey 2,000 British people to find out just how much interest they have in setting up their own business, and whether the recession has impacted their entrepreneurial dreams.

The result were some fascinating findings which confirmed that while people would like set up their own business in 2009, the recession has curbed enthusiasm.

• A third of Brits have or would like to set up their own business, but have put off their decision due to recession fears.

• Half think that now is a worse time to set up a business compared to this time last year.

• 40% believe that the recession has delayed their ambitions in setting up a business alone.

• 36% of people aged between 25-34 hope to set up on their own one day, compared to just 22% of 45-54 year olds.

On the whole, the results show that people are wary. The downturn has knocked confidence in the staying power of small businesses, and the results echo the awareness of the risk involved. It seems the older, wiser, more experienced folks who have struggled through previous recessions are more reluctant to take on the risk whereas the younger, less experienced budding entrepreneurs are still keen and rearing to go.

With increased support for small business more evident and a New Year just around the corner, who knows, attitudes may change in the near future.  We certainly hope small businesses keep fighting and get the support they so desperately need, especially since they are the back bone of the British economy and critical in pulling the UK out of the recession.

Time for a new wave of young entrepreneurs?

Last week 250,000 young people across the UK anxiously awaited their A level results, but with this year’s grades reaching record highs the competition for university places is tougher than ever. Even those that achieved high grades could miss out on a place. Young people are bearing the brunt of the recession, and the latest Government stats showing that one in six 18-24-year-olds are not in education, employment or training (aka NEETs). This difficult environment could provide the perfect opportunity to foster the next generation of UK entrepreneurs.

The path from school to business owner is actually surprisingly well trodden, with many of our most well-known entrepreneurs choosing the option of starting a business as another valuable way of building their future. Examples include Richard Branson, Steve Jobs, Peter Jones, Ingvar Kamprad (Founder of IKEA), Theo Paphitis, and Lord Alan Sugar. But clearly these few successes are the exceptions not the rule, so it is vital that more help and encouragement is provided to young people that are considering their options at this time.