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October 03, 2014

More young people starting their own businesses

More young people starting their own businessesThe number of under-35s starting a business has risen by more than 70% since 2006, according to new figures published this week.

Research by DueDil and Enterprise Nation compared pre-recession company formation rates in 2006 with figures in 2013 and found a marked increase across all age groups – but particularly amongst those under 35.

In 2006, 145,104 companies had been founded by people under the age of 35; by 2013 that figure had risen to 247,049. Men have set up 74% of these new businesses, while 26% have been established by women.

Emma Jones, founder of Enterprise Nation, said: “These statistics show that younger generations are no longer pinning all their hopes on finding the perfect job, they are taking their destiny into their own hands and creating a business around a skill, a passion or a hobby.”

The findings tally with recent research from UnLtd that found that 55% of young people aged 16 to 25 now want to set up their own business.

Also this week, the British Chambers of Commerce (BCC) has published the findings of its latest Workforce Survey which concludes that young people need more support to make the transition from education to work.

The research found that 88% of businesses think school leavers are unprepared for the workplace, while 54% think graduates are not work-ready.

A lack of work experience is highlighted by 76% of firms as one of the key reasons young people are unprepared for work. Over half (57%) said that young people are lacking basic “soft” skills, such as communication and team working.

However, 52% of firms say they don’t offer work experience placements. Just over one third of businesses (39%) said they offer apprenticeships. An additional 32% of firms would consider offering apprenticeships in future, while 54% say funding for additional training would encourage them to hire more young people.

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