News

May 22, 2015

The rise of "generation entrepreneur"

Two very different factors – online opportunities and jobs shortages – are encouraging more young people to set up their own enterprise.

In particular, the growth of the app economy is helping to create "generation entrepreneur", according to international IT consultancy Procorre. Companies House data shows that there are now 26,400 people aged 21 and under in the UK registered as company directors.

Wiktor Podgorski, contracts and HR manager at Procorre, said: "The UK's technology sector is growing fast and attracting a lot of high profile investment. The success of a few pioneers has made people realise that they can start setting up a business much earlier than in the past."

Some of the influential role models for young internet entrepreneurs include Pete Cashmore who founded Mashable at the age of 19; Ross Bailey, who was 21 when he secured £1m of funding for Appear Here; and Nick D'Aloisio who founded the news aggregator app Summly when he was 15 years old.

However, a motivating factor for young entrepreneurs is also the lack of jobs, with the rate of unemployment for those aged 16-24 at just over 16%.

Podgorski said: "Inability to find the kind of employment they want may be inspiring some young people to start out on their own instead."

High-tech industries are particularly appealing, he says, because "the size of a business is much less important than its ability to create innovative products. If the business itself does not make them millions, it can open doors to future employment and other projects."

Also, this week, entrepreneur Will Davies of Aspect is campaigning for more business education in schools. He said: "The UK is a country where we pride ourselves in becoming our own boss and we need to teach and inspire young people in investing in profitable ideas."

Davies recently launched the Entrepreneurs4Schools scheme, backed by education secretary Nicky Morgan, where business leaders give talks to pupils at their former schools. Lancelot Clark of Clarks Shoes, John Bird of Big Issue and former Jaeger boss Harold Tillman are also behind the initiative.

More on this topic:

• Eight reasons to start your own business when you graduate ARTICLE
• The Young Entrepreneur PROFILE
• Do you need a degree to run a business? ARTICLE