The youngest UK business owners are reaping the rewards of starting their entrepreneurial journey early on according to new research which reveals they are making £17K more than the national average salary. The study by VistaPrint of young full-time business owners in the UK – based on a survey of over 500 business owners aged 16-362 – discovers that Gen Z and Millennials are not only financially motivated to run their own business but are also doing it to fulfil their passions, with 31% of people citing this as the reason they have started their own business.
Young people are serial entrepreneurs
Two-thirds (66%) of young entrepreneurs aged 16-36 have already had up to three businesses before starting their current one. Gen Z business owners are also starting their entrepreneurial journeys young, with the average business owners starting at just 19 years old. This is eight years before the Millennial generation, with most of them starting their businesses at 27 years old.
It’s a family affair
Family ties are helping many young entrepreneurs to start their businesses. A third (33%) of young business owners start their businesses with family members, rising to 41% for Generation Z compared to only 24% of Millennials. Young people are also getting a little help from the bank of mum and dad, with Gen Z young business owners far more likely (22%) to get investment from their parents or family members than their Millennial counterparts (13%).
A challenging career choice for business owners
Young business owners in the UK revealed that marketing and branding (12%), selling services online (11%) and work/life balance (10%) are the biggest challenges they face, but this is countered by the many benefits of being your own boss. A third (33%) of 16 to 36-year-olds revealed that flexible hours, increased one-to-one mentorship and extra holidays are the top benefits they didn’t receive from previous employers.
To tackle these challenges, young entrepreneurs are getting savvy with their marketing tactics, with over a quarter of people reporting that social media (27%), and marketing advertising (26%) are the most effective ways to promote their businesses. Gen Z young business owners are also far more likely (28%) than Millennials (16%) to utilize in-person marketing in the form of pop-ups as an effective way to promote their business.
Antoine Thieser, Brand Strategy Director for Europe at VistaPrint, says: “Young business owners are taking full advantage of being their own boss with their average salary outperforming the national average by £17,000. Not only does starting your own business from a young age increase your earning potential, but the social and emotional benefits seem to be a real draw for Gen Z and Millennial entrepreneurs.”
