Over two-thirds of Gen Z workers have entrepreneurial ambitions, according to new research, but at the same time there are a worrying number of young people that are not in employment, education or training.
A survey of 1,000 employees aged 18-27 years old who are currently working in UK businesses has found that 67% of them have ambitions to start their own business.
The research, conducted by American Express and The Conduit, asked Gen Z employees if they felt they have the key skills needed to pursue their business dreams. Almost nine in ten (87%) said they are confident in their collaboration skills, 82% say they are innovative thinkers and 80% claimed to have the necessary leadership skills.
However, respondents also identified gaps in their skillset which they felt might hinder their entrepreneurial ambitions:
- 46% were worried about pitching for funding;
- 38% weren't confident they could develop a business plan;
- 34% said they didn't have any knowledge about sources of funding;
- 23% said they didn't have the right connections.
The research suggests that companies could do more to harness this untapped potential, by fostering greater "intrapreneurship" - giving employees the chance to develop their entrepreneurial skills while working in an established business.
"It's clear from our research that the Gen Z workforce has an entrepreneurial mindset and many believe they have the skills needed to set up on their own. But it also reveals a clear opportunity for the wider business community to support those with leadership ambitions, either within their existing organisation or in building their own business." Lee Sullivan, vice president American Express.
BCC warns of "lost generation"
While many Gen Z workers are reaching their potential, the British Chambers of Commerce (BCC) has warned that those young people not in employment, education or training (known as NEETs) could become a "lost generation".
In October to December 2024, there were 987,000 NEETs, including 392,000 unemployed and 595,000 economically inactive. The British Chambers of Commerce are calling on the government to:
- Invest in support to help young people into work.
- Support SMEs to take on and train young people.
- Increase workplace health support for firms to keep people in jobs.
- Set a target to reduce the proportion of young NEETs in the UK to that of the Netherlands (taking the proportion down from 13.4% to 4.8%).
Research by the Kings Trust shows that one in four people classified as NEETs would like to work but cannot, due to mental health problems. More than half (52%), said the longer they were unemployed the harder they were finding it to get work, while 45% said being out of work meant they had lost confidence in their skills.
"The number of young people who are not in employment, education or training is at its highest level for a decade. Generation Z face a double whammy of increasing barriers to entering the workforce, and reducing opportunities as the number of vacancies continues to fall. But research shows the longer we leave this pool of talent to drift away from the workplace the harder it becomes for them to engage." Shevaun Haviland, BCC director general.
The NEET challenge
BCC is calling for businesses to open up employment opportunities to young people - just 13% of firms currently have specific recruitment, training or retention plans for under-25s. SMEs, in particular, are missing out on the benefits of a targeted approach to youth employment.
"Government must support SMEs to take on more young people and train them for the jobs of the future." Shevaun Haviland, BCC director general.
The impact of change could be significant. According to BCC, the economic benefit of tackling the NEET challenge could add £69bn to UK output.
Written by Rachel Miller.