Creating Their Own Opportunities: Why Youth Entrepreneurship Matters
For many young people across the UK, getting that first job is becoming increasingly difficult. But while traditional routes into work are getting harder to access, another option is gaining ground: starting a business.
This was the focus of a recent discussion at the House of Lords, which YEA attended to explore the changing landscape of youth employment and the role entrepreneurship could play in creating new opportunities.
At the centre of the conversation was Starting Out and Starting Up, a report from The Entrepreneurs Network.
The findings make for important reading.
Between April and June, 981,000 young people aged 16–24 were not in education, employment or training (NEET), representing 13% of this age group. Starter vacancies have fallen by 49% over the past decade, and by late 2025 there was just one starter job for every three young people who were NEET.
For many, that first job is about more than earning a wage. It's an opportunity to gain experience, build confidence and begin developing skills that can shape their future. Missing out on that first step can have lasting consequences, with the Milburn Review finding that 45% of 24-year-olds who are NEET have never had a job.
But the report highlights another part of the picture. While traditional employment opportunities have become harder to secure, more young people are choosing to work for themselves. Around 193,000 young people aged 16–24 are now self-employed, with the self-employment rate among working young people rising from 4.5% to 5.4%.
For some, this is a response to fewer jobs. For others, it's an opportunity to turn a skill, interest or business idea into a source of income. AI and digital tools are also making it easier and cheaper to get started, helping young entrepreneurs manage tasks such as marketing, bookkeeping and administration.
Self-employment won't be the right route for everyone, and it can't replace the need for employers to recruit young people. But it could offer another way into work for those who might otherwise struggle to find an opportunity.
The report proposes three ways to help. These include a Startup Allowance pilot for under-25s, a £3,000 Youth Enterprise Grant for eligible young people on Universal Credit who start a business, and a youth-focused strand of the government's Help to Grow programme to help young entrepreneurs use AI. According to Cebr, helping just 5% of young people who are NEET into self-employment could add around £4 billion to the UK economy by 2029.
But while these recommendations focus on supporting young people as they enter the workforce, we believe there's another important part of the conversation: what happens before they get there?
At YEA, we work with schools and young people across the UK, and we know that starting a business isn't always something they see as a realistic option. Some assume it's something to consider much later in life, while others believe they need money, connections or a perfect plan before they can begin.
Often, what makes the difference is having the opportunity to explore an idea, learn from an entrepreneur and discover that they don't need to have everything figured out to get started.
Through entrepreneurial education, young people can develop practical skills in financial literacy, marketing, communication and problem-solving. Just as importantly, they can build the confidence to share their ideas, learn from mistakes and consider opportunities they might never have thought possible.
This is why we believe entrepreneurial education should begin while young people are still at school, rather than waiting until they're struggling to find their first job. If starting a business is to be recognised as a legitimate route into work, young people need the chance to understand what's involved and develop the skills to pursue it.
Our visit to the House of Lords reinforced the importance of keeping this conversation moving forward. As routes into work continue to change, we need to make sure young people understand the options available to them and have the support to explore them.
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