Big Increase in young entrepreneurs and start-ups following recession

Record numbers of young people are starting businesses, according to new statistics released by data research firm Duedil and small business network Enterprise Nation.

A new report, released today, compared pre-recession company formation rates in 2006 with latest statistics in 2013, showing a marked increase across all age groups.

The under-35 age bracket saw the steepest increase in activity. In 2006 there were 145,104 companies founded by young people. By 2013 it had jumped to 247,049.

Young men are leading the charge in the start-up stakes, however. The figures show that 74pc of these new firms are run by men, while just 26pc are founded by women.

Younger entrepreneurs are now also less likely to co-found. Statistics show 66pc of young people launched their firm with a partner in 2006. By 2013 that had dropped to 42pc.

This research adds weight to existing research into youth entrepreneurship in Britain. According to UnLtd, a foundation for social entrepreneurship, more than 55pc of young people aged 16 to 25 now want to set up their own firm. A report from Santander also estimated that 80,000 UK university students run a business, and a quarter of these plan to turn it into a career when they graduate.

Emma Jones, founder of small business network Enterprise Nation, said: “These statistics show that younger generations are no longer pinning all their hopes on finding the perfect job, they are taking their destiny into their own hands and creating a business around a skill, a passion or a hobby.”

However, research from entrepreneur network Shell LiveWIRE and Youth Business International last November found that while 18pc of 18-34 year olds in the UK have a business idea and believe they have the entrepreneurial skills to start a venture, fewer than 4pc go on to create a company that pays a wage and makes a profit.

The statistics show there was also an increase in those registering companies in the over 35 bracket, with a 55pc increase in this age group over the same time period.