Why Gen Z could transform the UK’s small business landscape

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.

Polling from Small Business Saturday UK, supported by American Express, 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. 

Yet, while ambition runs high, turning these ideas into reality often comes down to one key factor: funding.

Ambition and talent are not always enough if access to capital is limited. In 2023/24, for example, 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. 

Fortunately, platforms like money.co.uk are stepping in to help. By providing some basic details about your business and what you’re looking for, money.co.uk can quickly match you with business loans suited to your bespoke needs. Applications take minutes, approvals can happen in as little as 24 hours, and checking eligibility won’t affect your credit score. 

In fact, 89% of SMEs applying via the platform are eligible for a loan.

Support like this 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 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. 

From Tan y Ddraig, a pottery café in North Wales, to Belfast-based children’s haircare brand Percy & Pop, and Literary Craft Parlour, makers of handmade gifts and décor inspired by literature, the list showcases the creativity, determination, and success of today’s independent entrepreneurs.

Each business will be spotlighted in the 100-day countdown to Small Business Saturday on 6 December, serving as a powerful reminder of what ambitious entrepreneurs can achieve when they combine a clear vision with determination and the right support.

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.