Nearly one in ten 16-24-year-olds have started their own business since the start of the pandemic, according to a study conducted by GoDaddy.
In a survey of 2,502 young professionals, 9% of respondents said they had set up a business venture since February 2020, suggesting that over 630,000 UK businesses have been established by “early entrepreneurs” in the period.
A further 18% of those surveyed reportedly have a concrete business idea, as Covid-19 continues to drive entrepreneurship across the UK.
While creative industries were the most popular target for new business ventures (17%), the early entrepreneurs also favoured retail (15%) and leisure (11%) start-ups.
Sakshi Anand, senior director at GoDaddy UK and Ireland, said: “Despite the challenges of 2020, our research shows that young entrepreneurs have managed to make the most out of a difficult situation and have demonstrated the ability to flourish in a challenging economic environment brought on by the global pandemic.
“In addition to those young entrepreneurs who have already started a business over the last year, and with 91% surveyed as already selling online or planning to sell online, we’re excited to see what 2021 will bring for our new generation of UK’s entrepreneurs.”
The rise in young business start-ups has been attributed to a lack of employment opportunities elsewhere, with three quarters of respondents saying the job market did not offer adequate possibilities for them in the current economic climate.
Moreover, almost one in five (19%) of 16-24-year-olds had tried and failed to find employment in their chosen sector, therefore encouraging them to launch their own businesses.