New Study Calls For Education System to Promote Enterprise & Innovation

Let’s empower a new generation of entrepreneurs. The latest news from Simply Business and and the FSB;

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 the UK’s youngest entrepreneurs. 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.

Jasmine Williams, founder of Starfish Virtual Assistance Ltd in Hampshire said “I feel like schools, colleges and universities should encourage young people to build something for themselves rather than working to build something for someone else. I was completely unprepared until I met other business owners who helped me.”

Chloe-Mairead Donnelly, founder of CMD Tutoring in Winsford said “I live in a deprived area, the opportunities for kids are minimal and the schooling isn’t the best. When I was a teenager, I thought entrepreneurship was something I wouldn’t be able to do myself. I was not prepared by the education system at all, the only thing I was taught in school was to write a CV.”

While nearly 60% of young people express an interest in owning a business, only 16% manage to turn this aspiration into reality. 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 14% starting or considering starting a business specifically to help their local community. 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. This rises to 16% when talking to those who are already selling through online marketplaces.

Young people in London (40%) are more likely to have a side hustle than anywhere else in the UK, compared to 19% in the East Midlands. 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: 15% of current or aspiring entrepreneurs 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% 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.”