Young people deserve better than unemployment after spending years studying for their exams, the Federation of Small Businesses (FSB) has warned on GCSE results day.

On the same day that thousands of young people found out their much-anticipated results, it was revealed that the number of 16 to 24-year-olds not in education, employment or training (NEET) across the UK is now 948,000.

This marks a 25,000 increase (2.7%) from the 923,000 recorded between January and March of this year.

While many will be happy with the results they received today, many may be disappointed. The UK’s largest business group is highlighting that whatever the grade, young people should be given opportunities to continue in education, start training or a job, or launch their own business.

FSB research shows that almost 60 per cent of young people are currently interested in owning a business, but only 16 per cent actually have a business or are in the process of setting one up.

The business group is now calling for the Government to back measures that open up routes into work, training or entrepreneurship – potentially helping 100,000 young people every year:

• Launch a New Traders Allowance, offering tailored support and increased payments to help them transition into entrepreneurship. The new scheme, which would be a more effective and ambitious replacement for the New Enterprise Allowance, should be available to all young people not currently in work.

• Introduce a new scheme based on the Future Jobs Fund, targeting those experiencing or at risk of long-term health related inactivity. This would include subsidised work experience to help young people out of work to get back into employment.

• Offer small employers a £3,000 incentive to hire an apprentice under 25. Almost half of small business employers say this would encourage them to take on apprentices, helping thousands more to invest in the next generation.

It’s crucial that pupils are given good quality careers guidance during their time at school, which includes advice about entrepreneurship. Just 35% of young people in England report having any exposure to enterprise education at secondary school, according to our previous research.

Federation of Small Businesses (FSB) Policy Chair Tina McKenzie said: “As pupils receive their results today it’s worth remembering that success isn’t defined by grades alone. Whatever your results there are many ways forward, and plenty of opportunities ahead."

“Some of the most successful business owners started with an idea, not necessarily a certificate or a grade. We need to make it easier for young people to take that route. Right now, the support to get started just isn’t there and that needs to change."

“The latest NEETs figures paint a worrying picture of those finding it difficult to find work or get back into the system, so the government needs to act. This comes on top of a labour market that’s already weakening, with fewer people on payroll and vacancies falling fast."

“Creating a New Traders Allowance could give a great opportunity for young people to get into work and take control of their future by starting their own business. We want the Department of Work and Pensions to get behind this and make sure the Youth Guarantee is widened to include proper support for anyone keen to give entrepreneurship a go."

“This trio of measures could make a huge dent in these NEETs figures, tapping into the potential of young people across the UK, reducing the figure by 100,000 each year. We know that ambition amongst young people is there, but it needs to be recognised and nurtured, otherwise we’re letting ambition and talent wither away purely because the routes into work or training aren’t clear enough."

“This could be the spark that helps a generation turn energy and ideas into something longer lasting. Young people need more than a grade on a piece of paper, they also need the chance to build a future."

“This is about giving the next generation the tools to build something of their own, so today’s young people can be tomorrow’s grafters, whatever their grades.”