Entrepreneurial young Brits take the leap to turn side hustles into start-ups
From Dragons’ Den to TikTok Shop, young people are leading a new wave of entrepreneurship in the UK. New research from Lloyds Bank finds Gen Zs are more likely than other generations to make side hustles a full-time gig, with three in five (60%) Gen Zs considering quitting their jobs to start up on their own.
A survey of 1,500 adults finds that eight in 10 (79%) say they aspire to being their own boss so they don’t have to work for anyone else ever again. Around a third (29%) say they feel unfulfilled in their current job role.
Compared to older generations, Gen Zs – those born after 1996 – are 57% more likely to say that the current economic and job market conditions are pushing them to think about creating their own source of income (33% vs 21% on average).
The research, which unpacks the psyche for entrepreneurs in Britain today, reveals nearly seven in 10 (68%) respondents expressing confidence in their ability to start a business, with this figure rising to three-quarters (73%) of Gen Zs. The top reasons for Gen Z entrepreneurs to go it alone include seeking greater financial independence (45%), finding better work life balance (37%) and to make the most out of their passions and hobbies (35%).
The study finds that the beginning of the year appears to be the prime time for ambitious individuals across all generations to transform their hobbies into businesses. More than a quarter (27%) consider starting a business at the start of the year.
Social media is an important source of inspiration and advice for new ventures established by young Brits. More than a quarter (26%) of Gen Zs say that ideas they see on social media is a reason for becoming their own boss, and they’re nearly three times as likely to turn to influencers online for advice when setting up a business (27% vs 10% on average).
Elyn Corfield, CEO at Lloyds Bank – Business & Commercial Banking, said: “The UK is recognised as a hub for entrepreneurship and game-changing businesses.
“Our research shows that a new generation are following their dreams to turn their passion into a livelihood. Innovators are forging their own path which is really inspirational to see. Freeing your inner entrepreneur can be exciting and scary but we’re here to support businesses start up and scale up, as many take the leap this year.”
The study also finds how young entrepreneurs are the first to admit they worry about the challenges that setting up their own business brings. Respondents say that high costs of launching a start-up (33%) is a major hurdle, with this figure rising to over half (52%) for Gen Zs and 40% for Millennials. Gen Zs are also 85% more likely to say that they’re unsure of the kind of support they need and where to find it (37% vs 20% on average for other generations).
Professor Sir Cary Cooper, professor of organisational psychology at Alliance Manchester Business School, said: “These are exciting results which bode well for the UK. It is encouraging to see young entrepreneurs wanting to start businesses so early in their careers.
“In the past we tended to see more mid-career employees, fed up with corporate life, look for an escape and attempt to gain control over their life. Now, we’re seeing how Gen Z entrepreneurs not only wanting financial independence, but also striving for better work-life balance and having a sense of purpose by doing something they’re passionate about.”
The respondents to survey also report a variety of catalysts to encourage them to take the leap. This includes having a vivid dream that their business would be a success, with Gen Zs being 73% more likely to say this than older generations on average (19% vs 11%) and watching Dragons Den or The Apprentice.
Budding business owners who are considering to ‘take a leap’ this year will be relieved to hear that just one in ten (11%) of people who have started a business say that it didn’t work out. On average, respondents say they make £2317.50 per month, which adds up to £27,810 a year.
