“Young adults in the UK are brimming with entrepreneurial ambition, but a persistent barrier threatens to stall the next wave of small businesses: access to finance," says Joe Phelan, money.co.uk business loans expert.

Data shows that over seven in 10 18- to 24-year-olds want to run their own business, with nearly a third describing it as a closely held dream. Retail, hospitality, and beauty dominate their sector choices, from bookshops to bakeries and pet care services.

However, ambition and talent are not always enough if access to capital is limited.

In 2023/24, for example, research shows 41% of 15- to 19-year-olds in London were living in households experiencing poverty after housing costs, a financial strain that can restrict access not only to funding but also to networks, mentorship, and business education, which are critical resources for aspiring entrepreneurs.

Similar challenges are faced by young people across the UK, making it harder to turn ambitious business ideas into reality. Social mobility is at its lowest in half a century, making entrepreneurship an attractive (but challenging) route out of insecure employment. But, without support, many promising ventures may never get off the ground.

Access to finance is routinely cited as the top hurdle for new business owners. Traditional lending routes can be slow, intimidating, or require extensive financial history, something many young entrepreneurs simply don’t have.

Support to access finance, such as getting a business loan, could be the tipping point for Gen Z entrepreneurs. When funding is accessible, ideas that were once dreams can become viable businesses. For many young people, this is not just a career choice but a route to financial independence and stability. It’s a chance to turn ambition into tangible impact, creating jobs, services, and innovations that benefit local communities and the wider economy.

Initiatives such as Small Business Saturday also play a role in supporting young entrepreneurs. Now in its thirteenth year, the campaign encourages consumers to shop small and support the UK’s 5.45 million small businesses.

Small Business Saturday UK recently announced its list of the 100 most inspiring small businesses for 2025, showcasing a diverse range of ventures that highlight the creativity, resilience, and innovation of the UK’s independent sector.

For young people dreaming of launching their own venture, such businesses show that success is possible across sectors, regions, and business models. The combination of Gen Z ambition, confidence, and accessible financial support could therefore herald a new era of small business growth in the UK.

Building Financial Confidence As A Young Entrepreneur

Access to finance is also about knowing how to apply. For many young entrepreneurs, having the right support to create a strong business plan, understand financial projections, and navigate credit checks can make all the difference when seeking funding.

Education in these areas is vital. Simple tools such as eligibility checkers, free business plan templates, and credit score reviews can help Gen Z prepare before approaching lenders. This preparation helps Generation Z choose the right type of finance, whether that’s a traditional business loan or newer options like crowdfunding.

"With the right mix of financial education and accessible funding routes, young entrepreneurs can gain the confidence and practical know-how they need to bring their ideas to life and to contribute to a stronger, more diverse small business landscape in the UK.”