The entrepreneurship boom: two thirds of young Brits want to work for themselves- new report by Block
Britain is on the verge of an entrepreneurship boom which could change its employment make-up and significantly boost the economy, new research has revealed. One in 10 (10%) Brits want to start a business in the next year. If all of these people were to do so, the number of businesses operating in the UK would almost double.
The ‘Entrepreneurship Revolution’ report commissioned by Block and undertaken by Public First, analysed the priorities and challenges facing a generation of driven entrepreneurs who are set to reshape Britain’s economy, driving a shift away from traditional employment towards independent enterprise.
The side-hustle surge
The findings show that the UK has a growing entrepreneurship culture. 15% of all Brits are already running a side-hustle alongside other work, and 13% do additional jobs to supplement their income, such as tutoring and babysitting.
This is being driven by younger generations in particular. More than two-thirds (67%) of Brits aged 18-34 are considering working for themselves and starting their own business, while nearly two in five (38%) 18–34-year-olds have already started their own business or side-hustle.
The findings showed that ethnic minorities are boosting the country’s enterprise culture. A quarter (25%) of those from an ethnic minority background currently run a side-hustle and nearly a quarter (23%) want to start a business in the next year.
However, there is still a gender gap. 29% of women aged 18-34 have started their own business or side-hustle, compared to 42% of men in the same age group.
Barriers to the side-hustle scale-up
Just 1 in 5 (19%) are not interested in turning their side-hustle into their full-time job. This suggests that a new wave of innovative and job-creating businesses could be on the verge of being unleashed.
Those who are already running side-hustles name better access to finance (37%), better tools and technology such as payment systems or website software (30%) and help with marketing and growing an audience (30%), as the top three solutions to the barriers they face.
The report reveals that traditional finance is not working for small businesses and a huge opportunity is being overlooked. The UK has the highest SME loan rate in Europe. Every year, more than 50,000 viable SMEs with low default rates are being denied the capital they need, costing the economy £4bn.
According to the report, meeting the finance needs of SMEs which are currently being rejected from loans each year could unlock up to £7.4bn for the UK economy.
John O’Beirne, CEO of Squareup International, at Block, said: “The ambition to start and grow businesses is there, but many entrepreneurs still find the financial system stacked against them. Access to fairer and more flexible funding provides entrepreneurs with the freedom to start and scale their businesses, manage cash flow, and invest in growth. When small businesses can plan ahead and access the resources they need, they build stronger local communities and contribute to the wider economy. Ensuring Britain’s next generation of entrepreneurs can reach their potential ultimately feeds into Britain’s overall economic health. ”
The research highlights the role flexible finance can play in unlocking this potential. While traditional loans remain out of reach for many small businesses, the data shows that flexible funding linked to sales can support growth – with over half of Square sellers surveyed saying their experience accessing finance through Square is better than other lenders.
Rich Bayer, CEO at Clearpay, at Block, said: “If just an additional 1% of SMEs were able to boost their productivity to the point where revenue was growing faster than headcount, it would contribute an additional £24.6bn to the UK economy each year. This is a huge untapped opportunity. Access to innovative digital solutions, like payment tech, are critical to help these businesses scale up profitably at a time when consumers expect a choice of payment methods at the checkout.”
Calculations within the report show how modern payment tools, like Buy Now, Pay Later, are contributing to the bottom line of businesses by helping them to gain new customers and retain existing ones. In 2024, BNPL enabled £6.6bn worth of sales revenue that would not have happened in its absence.
Gaya Vara, founder of Gaya Bakery and Clearpay merchant, said: “I began baking as a hobby and creative outlet while working in finance and this quickly evolved into a full-time business as commissions for special occasion cakes grew. Today, customers can order a range of products from us – everything from our in-store pastries, as well as desserts and larger celebration cakes. Our online store has been instrumental in that growth. It allows customers to browse our full range, place orders with ease, and gain a sense of what defines our work – boutique, made-to-order cakes that combine exquisite flavour with refined, elegant design.
“Running a physical shop brings a different set of challenges, but I remain a firm believer in the value of in-person retail. There’s a distinct charm in customers stepping through our doors – seeing the cakes up close, breathing in the delicious aromas of freshly-baked pastries, and connecting with us in person – an experience no online platform can ever replace.”