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Entrepreneurship is no longer a niche pursuit for young people
Entrepreneurship is becoming a mainstream route into work for young people facing greater difficulty finding traditional entry-level jobs, argues Steve Hare. He says the Government should support people who create their own jobs alongside measures such as apprenticeships and graduate schemes, because successful start-ups can also employ others.
The Autumn Budget’s proposed Young Entrepreneurs Allowance would help with living costs in a new business’s first year, but the article calls for practical mentoring and training in digital skills and AI. Youth self-employment is at its highest level in a decade, with 27,500 more under-25s working for themselves than in 2022. Cebr estimates that moving 5 per cent of young people into self-employment could add almost £4 billion in economic value by 2029; examples include two founders who use AI in businesses that have reached £10,000 monthly revenue and matched a former salary within three months.
In short
- Young people are increasingly choosing self-employment.
- 27,500 more under-25s work for themselves than in 2022.
- Cebr estimates a potential £4 billion boost by 2029.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
With traditional entry-level jobs harder to find, self-employment can give young people another route to earn, develop skills and turn ideas into viable businesses. Targeted start-up support, mentoring and digital training could help them overcome early barriers, while successful businesses may create jobs and add economic value.
The case against
Starting a business is uncertain and can leave young people without the income, training or protections that employment schemes provide; a few rapid successes do not show how typical those outcomes are. Public support may be better focused on improving access to secure entry-level jobs, apprenticeships and graduate schemes, especially if allowance funding would otherwise go to those with limited prospects of sustaining a business.