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Gen Z and Small Businesses: The Next Big Thing for the UK Economy
A recent study by Small Business Saturday UK and American Express reveals that Generation Z, particularly individuals aged 18 to 24, are showing a strong interest in entrepreneurship, with 71% expressing an aspiration to run their own businesses.
This enthusiasm for business ownership is not only encouraging but also presents a significant opportunity for the UK economy, which could benefit greatly from the entrepreneurial potential of this demographic. In fact, nearly a third (31%) of Gen Z members report that starting their own business is a closely held dream.
Retail, hospitality, and beauty are the top sectors young people are considering for their future businesses, with 17% aiming to open a bookshop, and 15% interested in running bakeries, spas, or pet-related services. This interest in sectors such as retail and hospitality reflects the diverse entrepreneurial ambitions of Gen Z, who are keen to bring fresh perspectives and innovations to established industries.
Small Business Saturday UK’s Role in Supporting Gen Z Entrepreneurs
The data from the Small Business Saturday UK and American Express joint research underscores the importance of supporting young people in their pursuit of entrepreneurship. According to Michelle Ovens CBE, Director of Small Business Saturday UK, “It is extremely encouraging to see this trend of entrepreneurial ambition among young people, as they have huge potential for innovation and could power the UK’s economic growth through starting their own businesses.”
Small Business Saturday, which celebrates and supports the UK's 5.45 million small businesses, plays a crucial role in fostering this entrepreneurial spirit. With this year’s campaign scheduled for 6 December 2025, the initiative aims to encourage consumers to support small businesses and empower future entrepreneurs.
Michelle emphasises the need to support everyone on their entrepreneurial journey: “Small Business Saturday is all about supporting our nation’s fabulous small businesses. During the campaign season and beyond, we need to empower everyone on their journey in entrepreneurship, no matter their age or circumstances.”
Barriers Faced by Young Entrepreneurs
While the ambitions of young people are high, many face significant barriers to entrepreneurship. Among the challenges they encounter are limited access to finance, business networks, and role models, especially for those from under-represented backgrounds. The research highlights that while Gen Z may feel confident in their skills, the path to business ownership is not always smooth.
The research from American Express also reveals that many in this cohort feel confident in their abilities to run a business. Nearly 90% (87%) of Gen Z members believe they possess strong collaboration skills, while 82% feel confident in their innovative thinking, and 80% have leadership capabilities. These findings indicate that young people are well-equipped with key entrepreneurial traits; however, the support structures necessary to help them succeed are often lacking.
A Call for Collective Support
American Express UK General Manager, Merchant Services, Dan Edelman, highlights the importance of continued support for young entrepreneurs:
“Gen Z’s appetite to set up by themselves is heartening as they are vital to ensuring small businesses continue to thrive into the future. Through our continued support of Small Business Saturday, we’re proud to shine a spotlight on the contribution independent businesses make across the UK, and the dedicated entrepreneurs running them.”
This support, according to Edelman, is crucial not only for helping young entrepreneurs but also for securing the continued success and growth of the UK’s small businesses, which contribute significantly to the economy.
Gen Z’s Growing Influence on the UK Economy
The rising entrepreneurial spirit among Gen Z presents a valuable opportunity for the UK. As the most entrepreneurial generation in comparison to older age groups, 56% of those aged 35-44 and 27% of those aged 45-54 express similar ambitions, the potential for growth is immense.
By tapping into the energy, creativity, and innovative thinking of Gen Z, the UK could see a new wave of successful businesses, from small shops and bakeries to tech startups and services that cater to emerging consumer needs.
Small Business Saturday UK is well-positioned to play a pivotal role in facilitating this transition, ensuring that the next generation of entrepreneurs receives the necessary support to make their dreams a reality.
With ongoing campaigns, community engagement, and collaborations with influential figures across politics and business, the initiative continues to serve as a powerful catalyst for the future of small businesses.
The Future of Small Business in the UK
In conclusion, as Gen Z sets its sights high on entrepreneurship, the collective effort of businesses, communities, and government entities will be vital in helping young entrepreneurs overcome obstacles and succeed. Small Business Saturday is an important milestone in this journey, providing a platform for young people to launch and grow their businesses.
With the continued backing of organisations like American Express and a wider support network, the future of small business in the UK looks bright, driven by the fresh ideas and energy of the next generation of business owners.
About Small Business Saturday UK
Small Business Saturday UK is a grassroots, non-commercial campaign designed to celebrate and support the UK's 5.45 million small businesses. Launched in 2013, the initiative encourages consumers to "shop small" and support local businesses, particularly on the first Saturday of December each year. The campaign aims to highlight the importance of small businesses to the economy, boost community engagement, and foster entrepreneurial growth. Supported by influential figures, local councils, and major brands like American Express, Small Business Saturday UK has become a significant platform for promoting small business success and empowering the next generation of entrepreneurs.
About American Express
American Express is a globally integrated payments company, providing customers with a wide range of financial products and services, including charge and credit cards, travel services, and merchant solutions. Founded in 1850, the company is renowned for its commitment to delivering exceptional customer service, innovation, and business success. American Express supports businesses through its merchant services, helping them accept payments securely and efficiently. The company also offers valuable insights, experiences, and rewards to its cardholders, fostering stronger connections and growth. With a global presence, American Express continues to empower individuals, businesses, and communities worldwide.
