a new Xero The study highlights a significant gap in the UK’s approach to nurturing the next wave of business founders. While many young people dream of starting their own ventures, financial information and resources hold them back, creating a feeling of exclusion from entrepreneurial opportunities.
Globally run by Xero small business The research conducted on the platform surveyed 1,000 students aged 16 to 21 studying full-time in mid-May 2026.
The results paint a picture of high enthusiasm tempered by practical obstacles. Almost three-quarters (72%) said they were interested in entrepreneurship, while more than half (51%) said entrepreneurship was insufficient. financing as the primary obstacle.
Close behind are low self-confidence (49%) and insufficient financial expertise (37%).
As a result, 61% of survey respondents viewed starting a business as something only available to existing individuals. presence or effective networks.
Financial independence is the biggest draw for 61% of these students.
But wider economic uncertainties cloud this impulse.
Two-thirds (67%) think that starting a company is too dangerous in today’s conditions, while one-third (33%) express personal financial concerns.
This comes at a time when youth unemployment has climbed to 16.2 percent (the highest level in more than a decade) and only 20 percent of young adults have incentive to pursue traditional employment paths.
Many see self-employment as a necessary alternative, but they lack the tools to pursue it safely.
The survey highlights shortcomings. financial literacy poses a greater challenge than gaps in general job skills.
Thirty-seven percent reported a lack of money management skills (such as money management). advance flow and taxes— only 23% cited weaknesses in areas such as sales or marketing. This fundamental deficiency leaves many people unprepared to turn ideas into viable operations.
Young people have clear ideas about what kind of help can close these gaps.
More than a quarter (26%) called for stronger financial education in the school curriculum.
Others emphasized the value of hands-on work business experiences (34%) and education with modern digital platforms (27%).
Meanwhile, many are looking for informal guidance: 42% turn to parents or relatives, 28% look to social media channels such as TikTok, and 23% rely on AI tools for advice.
Kate HaywardUK General Manager XeroHe expressed his concern about the situation. He stated that society is failing to equip ambitious young individuals with the necessary job opportunities. finance Despite the willingness to create independent opportunities, talents.
Hayward highlighted the need for systemic changes, praising initiatives such as The Maple Review, an independent, government-backed effort by Small Business Britain.
The review advocates a “Business Skills Guarantee” to provide every student with practical entrepreneurial training, role models and pathways before they finish training.
kate perryThe young man, who founded Chase Canines at the age of 21, shared his experiences.
He described the steep learning curve of managing multiple responsibilities and noted that basic school budgeting lessons fall short when it comes to dealing with taxes and other real-world demands.
earlier exposure financial managementHe believes it will make entrepreneurship much more accessible and increase startup confidence.
Aspect England Addressing these educational deficiencies, which are struggling with economic pressures, can lead to the emergence of a significant potential. Without targeted support, a generation full of impulses risks being left on the sidelines, limiting innovation and growth. Industry professionals are now calling on policymakers and educators to prioritize financial and business skills training for better performance. to allow England based entrepreneurs.
