A new research paper released during National Careers Week 2025 calls for the Welsh Government’s Young Person’s Guarantee to include meaningful pathways and support towards entrepreneurship and a strong place for enterprise education in the new school curriculum for Wales.
The study, conducted by small business insurance provider Simply Business and the Federation of Small Businesses (FSB), gives the next generation of small business owners a voice, and provides clear recommendations for how governments can tap into the potential of young entrepreneurship as a powerful force for the economy and local communities.
While nearly 60% of young people express an interest in owning a business, only 16% manage to turn this aspiration into reality. Barriers identified by the report include a lack of role models, difficulty in accessing finance, and a lack of both financial literacy and broader business skills.
Young people in Wales were the most likely to focus on money-making as a motivation for starting a business (63% vs UK average of 52%), highlighting the significant number of young Welsh people who see entrepreneurship as a means to create wealth and raise their standard of living.
Indeed, Wales has seen a positive increase in entrepreneurship, with the 2023 Global Entrepreneurship Monitor report showing that Wales saw a record-breaking increase in entrepreneurial activity, with 14.0% of young people now engaged in early-stage business activities, up from 2.0% in 2002.
Against a backdrop of high street decline, it’s particularly powerful to see that 11% of young entrepreneurs hope to open a business on the high street in the next five years. This rises to 16% when talking to those who are already selling through online marketplaces.
Ben Cottam, Head of Wales at the Federation of Small Businesses, said:
“Unleashing the entrepreneurial potential of our young people must be at the heart of plans to tackle unemployment and grow the Welsh economy.
“This research has delved into the challenges young business owners face, such as access to funding and mentorship, and how their success can be built on.
“Meaningful entrepreneurial pathways within the Young Person's Guarantee, and strong enterprise education within the new curriculum, are essential. Education is a vital tool to ensure young people are inspired and equipped with the right skills to start their own business.
“To become a high-growth, productive economy which creates well-paid jobs across Wales, we urge the Welsh Government to invest in the next generation of business leaders so that new, innovative companies can thrive.”
Julie Fisher, UK CEO Simply Business, said:
“It’s incredible to see the amount of talent, determination and passion bubbling amongst young people in the UK. Every young entrepreneur, regardless of their background or location, deserves nurturing and a chance to succeed.
“At Simply Business, we insure nearly a million small businesses, and we understand the challenges that entrepreneurs face when starting out. Now, it's time for us all to support the next generation of small businesses. We must break down the barriers and unlock the immense potential of this group – a gold mine of enterprise potential awaits knowledge, inspiration, and guidance.”
In response to the findings, the Federation of Small Businesses have made a number of recommendations for both the Welsh and UK governments, including:
- A strong place for enterprise education in the new school curriculum for Wales and the provision of high-quality careers advice for all primary and secondary pupils.
- Ensure that the Welsh Government’s Young Person’s Guarantee includes meaningful pathways and support towards entrepreneurship.
- Create a Side Hustle Allowance – double the tax-free trading allowance, which has been frozen for over seven years, to reflect and encourage young entrepreneurship.
- Promote relevant free guidance and advice for young entrepreneurs and influencers using social media platforms and online marketplaces, with efforts being led by The Competition and Markets Authority and the Advertising Standards Authority.
The full list of policy recommendations can be found in the report here.
