How can we support the next generation of business owners?
New research shows that 45,797 young people aged between 16 and 18 either registered as self-employed or formed their own limited companies between 2018 and 2020.
Despite these encouraging figures about young entrepreneurship, the teaching of important practical skills for starting and running a business is still not a core element of current careers education in UK schools.
Many of these young people register as self-employed because post-16 academic education is not the right path for them and adequate work-based learning opportunities are not available.
However, there is no reason why nurturing an entrepreneurial mindset can not happen symbiotically with developing academic excellence, yet young people seemingly must choose one path or the other. That must change.
Richard Osborne, founder of UKBF (UK Business Forums), which is the UK’s largest online small business community, volunteers as a mentor for disengaged young people and has found that many children in the classroom who are described as ‘challenging’ possess the qualities and skills that will take them far in the boardroom.
He says, “As a business owner I like people around me to challenge my perspective and look for alternative options. When people look at situations in a different way and ask difficult questions, together we come up with new solutions and move forwards and upwards.”
Richard grew up as an at-risk ‘disengaged’ young person and knows first-hand how a traditional education system does not work for everyone.
He says, “I am often asked if I dislike schools. I really don’t, but I do dislike there being an education system that is not tailored to each individual.
”I really value education, but there are many young people who simply can’t learn through traditional methods.
“What works for one person does not work for all. Many of the attributes needed to be a successful business owner, such as risk-taking, overcoming failure, and questioning the status quo, are frequently seen as negative traits in the classroom and those people will struggle in a typical academic environment.
“This needs to change for the future of British business.”
Young people in England can only leave school at the age of 16 if they are continuing in full or part-time education, or work-based learning, however, academic learning is not always the right route for everyone.
UKBF’s research has revealed that every year over 10,000 young people under the age of 18 choose to start their own business, however, supporting entrepreneurship is a glaring omission in the current UK education system and practical skills like registering a company, predicting profit and loss and understanding a balance sheet are not adequately taught in schools.
Whilst the small business sector is often referred to as “the backbone of the UK economy”, a step-change is needed to ensure our future business leaders are appropriately supported and their entrepreneurial talents are nurtured from a young age.
One such young business owner is Molly, owner of Northamptonshire-based Molly-Ann Equestrian.
Molly started her own business at 16-years-old after being told she was over-qualified for an apprenticeship and too young to start full-time employment. Molly was home educated which meant that she could sit her GCSEs and equine exams before she was 16.
Molly says, “I was told I was overqualified for an equine apprenticeship but, because of my age, I couldn’t get a full-time job either. There were no options available to me for two years until I turned 18 other than to register as self-employed”.
For Molly, and so many other young entrepreneurs, starting out in business from a young age is a bold and brave step, especially with so little information and support to help young people confidently do this.
Molly adds, “Whilst it was the best decision I made, at the time it was hard knowing where to go for help because there’s so little information available for people like me who are stuck in between full-time education and the rest of their careers.”
Clearly starting out in business from a very young age has huge appeal to thousands of young people in the UK every year. What’s needed now is better, more comprehensive support that nurtures their entrepreneurial talents and equips and prepares the next generation of business leaders with the practical skills they need to thrive.