Young people in the UK aspire to own their own business, but the path feels financially out of reach, according to new research from Xero, a global small business platform.
New survey findings reveal nearly three-quarters (72%) of students surveyed aged 16-21 are attracted to the idea of entrepreneurship, but half of the respondents (51%) are coming up against a lack of funding, a lack of confidence (49%) and, for over a third, a lack of financial skills (37%). This has led to a sense of career exclusion, with 61% believing running their own business is a path reserved for people with money or connections.
Six in 10 (61%) students were very clear on what draws them to entrepreneurship: financial freedom. Yet that is outweighed by financial anxiety, with two-thirds (67%) agreeing that starting a business feels too risky in the current climate, and a third (33%) are worried about their personal finances.
With youth unemployment at its highest rate in over a decade (16.2%, up from 14.2% year-on-year, ONS May 2026), and only one in five young people (20%) planning a traditional career path, the pressure to find an alternative route is real. But without the financial knowledge to back themselves, many are stuck.
A lack of financial skills is also emerging as a barrier to starting a business, more than traditional business know-how. The proportion of young people who cite a lack of financial skills (37%) is significantly higher than that citing a lack of business acumen.
