‘We’re letting young people down’: UK's next generation of entrepreneurs has the drive but not the financial skills

London – 9 June 2026 – Young people in the UK aspire to own their own business, but the path feels financially out of reach, according to new research from Xero, the global small business platform.

New survey findings reveal nearly three-quarters (72%) of students surveyed aged 16-21 are attracted to the idea of entrepreneurship, but half of the respondents (51%) are coming up against a lack of funding, a lack of confidence (49%), and, for over a third, a lack of financial skills (37%). This has led to a sense of career exclusion, with 61% believing running their own business is a path reserved for people with money or connections.

Motivations overtaken by financial insecurities

Six in ten (61%) students were very clear on what draws them to entrepreneurship: financial freedom. Yet that is outweighed by financial anxiety, with two-thirds (67%) agreeing that starting a business feels too risky in the current climate, and a third (33%) are worried about their personal finances.

With youth unemployment at its highest rate in over a decade (16.2%, up from 14.2% year-on-year, ONS May 2026), and only one in five young people (20%) planning a traditional career path, the pressure to find an alternative route is real. But without the financial knowledge to back themselves, many are stuck.

Unpreparedness for running a business

A lack of financial skills is also emerging as a barrier to starting a business, more than traditional business know-how. The proportion of young people who cite a lack of financial skills (37%) is significantly higher than that citing a lack of business acumen, such as sales or marketing skills (23%), pointing to a gap in the basics, from managing cash flow to understanding taxes.

However, young people are clear about the support they need to build their confidence. Over a quarter of respondents say they would benefit from better financial education in schools (26%), suggesting many are leaving the education system without the skills needed to unleash their entrepreneurial ambitions. Respondents also feel better exposure to real-life business scenarios (34%) and help with understanding digital business tools (27%) would help them pursue entrepreneurship.

Young people turning to social media and AI for support

In the absence of formal support, many are building their own informal networks for guidance. While respondents are of course likely to turn to parents or family members for financial business advice (42%), over a quarter (28%) said they would turn to social media platforms like TikTok - with almost a quarter (23%) using AI-powered searches for support.

“We’re letting our young people down by not building business financial skills into their education,” said Kate Hayward, UK Managing Director, Xero. “We have a generation who are ambitious and driven to build something of their own, yet we’re failing to give them the skills and confidence to make it happen.

“We’ve been pushing the Government on this because we see what happens when small businesses don’t have access to the tools, knowledge or support at the start. We hope that the launch of The Maple Review and the headline recommendation of a Business Skills Guarantee marks a turning point for young people and entrepreneurship. The UK can’t afford to leave this talent and ambition on the table.”

Xero is a proud supporter of The Maple Review, an independent, government-backed initiative run by Small Business Britain, committed to addressing the economic barriers to starting and running a business, including a lack of financial confidence. The final report provides practical recommendations to ensure every young person has access to business skills, entrepreneurial role models and pathways before leaving education.

From ambition to accounts

“I started my business at 21 and quickly realised that running a small business means wearing many more hats than most young people might expect,” said Kate Perry, Founder of Chase Canines. “The extent of the financial skills I was taught at school was learning how to budget, which, while helpful, doesn’t help to pay, claim and file my taxes. If young people were given more exposure to business and financial management earlier on, it could make entrepreneurship feel far more achievable - and it certainly would have given me more confidence when I was starting out.”

-ENDS-

Media contact

Xero communications UK | Sophie Whitney | ukpress@xero.com

About the research

The research was conducted by Censuswide, among a sample of 1000 Respondents (Aged 16-21) in full-time education. The data was collected between 11.05.2026 - 18.05.2026. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge. We adhere to the MRS Code of Conduct and ESOMAR principles

About Xero

Xero is a global small business platform that helps customers supercharge their business by bringing together the most important small business tools, including accounting, payroll and payments — on one platform. Xero’s powerful platform helps customers automate routine tasks, get timely insights, and connects them with their data, their apps, and their accountant or bookkeeper so they can focus on what really matters. Trusted by millions of small businesses and accountants and bookkeepers globally, Xero makes life better for people in small business, their advisors, and communities around the world. For further information, please visit xero.com.