Start Up Loans for Gen Z entrepreneurs have risen by 11% in the last year in Wales
New data released by Start Up Loans, part of the British Business Bank, reveals there has been a surge in entrepreneurship amongst Gen Z in Wales, with the number of loans taken out by young founders increasing by 11% in 2025, as more young people look to start their own businesses.
In 2025, Gen Z founders in Wales secured £623,600 in funding, up from £572,850 in 2024.
Research published late last year by KPMG found Gen Z workers are increasingly leaving corporate careers in pursuit of entrepreneurial opportunities, with 42% leaving to work in start-ups and 35% going freelance or becoming self-employed. Younger Gen Zs entering the workforce face a tough job market, with ISE data showing a record 140 applications per graduate vacancy, the highest level in over 30 years.
Data from Start Up Loans suggests that against this backdrop in Wales, Gen Z are turning to starting their own business. In 2025, Gen Z founders received a substantial 14% of all loans delivered in Wales.
One young founder who has used Start Up Loans funding is 25-year-old Louis Watkins, founder of Clear for Men. In 2021 he launched the brand to empower men to feel confident, while normalising conversations around mental health.
Louis Watkins, founder of Clear for Men, said: “I started Clear For Men in 2021 after struggling with my mental health. I felt lonely, burnt out, and had lost a lot of confidence. Skincare reminded me to pause, take a moment, and prioritise myself. I wanted to build a brand that helped men feel more confident in their skin, while encouraging conversations around mental health.
“The funding from the Start Up Loans programme helped me take this from an idea into a real business. Since then, the business has grown and we now partner with independent stockists like The Station in Bridgend as well as selling online and on social media. I am looking to expand into new retailers like hotels and spas, whilst also working on sustainable packaging innovations and future product launches, including an SPF moisturiser.”
Louise McCoy, managing director of Start Up Loans Products, British Business Bank commented: “The younger generation is entrepreneurial in nature and shouldn’t be underestimated. A key challenge young people will face though is affordable access to finance and impartial support given their lower savings and lack of track record. Start Up Loans exists to fill these market gaps and we are proud of the work we have done to help younger people start businesses.”
Blair McDougall, Minister for Small Business and Economic Transformation, said: “Age shouldn’t be a limit on entrepreneurial ambition. It’s fantastic to see an uptake in aspiring young people taking advantage of government support to help turn their ideas into thriving businesses.”
Since its inception in 2012, the Start Up Loans programme has delivered more than 125,000 loans to business owners across the UK, amounting to more than £1.25bn of funding. The government’s Backing Your Business Plan announced in Summer that the Start Up Loans programme has been expanded and will provide more than £1bn of extra lending to entrepreneurs.