Powering the Next Generation How to unlock the potential of Britain's young entrepreneurs

In the summer of 2018, I was a naive 21-year-old who'd recently graduated from the dreaming spires of the University of Oxford, becoming the first person in my family to do so. Suddenly finding myself back in my childhood bedroom in Morley, West Yorkshire, I considered splashing the last GBP200 of my student loan on a final big night out. But, instead, I took a chance and invested the money in starting my own tech startup, Zero Gravity.

What started as a bedroom project has since grown into a platform that has supported over 8,000 students from low-opportunity areas into top universities, and the business powering the social mobility strategies of major companies like Lloyds Bank, Snapchat, and KPMG. I've built a team of 27 based in Central London, raised over GBP6m of equity investment, and deployed GBP1.5m of scholarships to low-income students along the way.

Running towards danger paid off. But unfortunately, my story is an outlier in a country where only 12% of venture capital (VC)-backed founders come from working class backgrounds. And whilst more young people than ever before are interested in the idea of starting a business, the rate of startup creation in the UK is still half of that in the US. That needs to change.

THERE'S A BIG OPPORTUNITY FOR GROWTH

More people than ever in the UK are starting their own businesses, with almost half of Brits having a side hustle nowadays. This is particularly a trend among young people, with recent research finding that there are 243,000 Gen Z company directors in the UK, climbing 42% in just one year, as young entrepreneurs opt to work for themselves, rather than be solely reliant on climbing the corporate ladder.

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There is so much young talent out there; all with huge potential to transform the UK economy, and drive innovation for decades to come. Young entrepreneurs often bring a fresh perspective to societal challenges, not being restricted by traditional ways of doing things. There's also a risk-taking inherent to youth that is a breeding ground for forward-thinking and disruptive ideas.

Young people also often have their eyes on purpose, often setting up ventures with a social mission at the core. Social enterprise leaders are often young, with a significant percentage aged between 16-24 in most countries (Pioneer's Post). Young entrepreneurs are also twice as likely to say that their business's primary goal is a social or environmental goal (The Entrepreneur's Network).

That's how my story started too. Like many young entrepreneurs, I wanted to use my skills to make positive change for both individuals, and, as a result, whole communities. I saw first-hand just how high the barriers are for talented individuals from socially mobile backgrounds to reach top universities and careers. I wanted to change this by starting my own technology platform that could unlock their potential. This is how Zero Gravity was born.

My story is one of many young entrepreneurs entering the UK marketplace. But there are huge barriers to unlocking this talent.

THE NETWORK DISADVANTAGE

In the world of startups, there's a scary concept: "the friends and family funding round." To get the investment needed to initially kickstart an idea into a real business, entrepreneurs are usually expected to fund their startup by raising money from people within their immediate network. Young entrepreneurs are particularly dependent on this funding, being more likely to raise finance from friends and family than older entrepreneurs, and less likely to have attended a comprehensive school (The Entrepreneur's Network).

But while 75% of founders come from wealthy backgrounds, and have access to a network they can call on for funds, for most people, this is simply not an option. It definitely wasn't for me. Not everyone has a rich uncle working in finance who can invest thousands in their idea.

So, how can we plug this gap? It's up to VC funds and angel investors to change their sourcing methods to be less dependent on privileged networks. More dedicated funds should be set up to fund founders from low-opportunity backgrounds, and those from outside London. This is the only way the UK can stop missing out on top working class talent, and harness the unique perspectives of this group to solve national challenges.

Beyond financing your business, your network can take your idea to the next level in other ways. Be it finding a cheap office space, building a team, generating public relations (PR) opportunities, or giving you advice on business challenges, a stellar network connects you with the right people to make things happen.

It's common knowledge that the UK is heavily run by networks. Zero Gravity's Gap Zero Report found that a state school student is as likely to know zero people who attended either Oxford or Cambridge as a private school student is to know more than nine. State school students are more than twice as likely to report having no "professionals" in their life to support their education compared to private school students.

With these stats, it's no wonder that young entrepreneurs often come from a subset of privileged backgrounds. Students who have a professional network to lean on for advice and connections have the tools, resources, and insider information at their disposal to get their ideas off the ground.

To combat this, we need to democratise access to mentorship. Learning from those that came before is an invaluable way of building knowledge, and can provide the building block for a successful startup.

Like many entrepreneurs, I had to move down to London to make my tech startup dreams a reality. But this doesn't have to be the case. Other countries offer better models that support innovation. For all of Silicon Valley's hype and success, the US has a wider variety of startup networks across the country than the UK does with its dependence on London. By building tech clusters outside of central London, we can democratise access to entrepreneurship for young people across all four corners of the UK from a wide variety of backgrounds.

THE NEED FOR AN ENTREPRENEURIAL EDUCATION

Most people in the UK have their entrepreneurial energy set alight by social media and squashed by the education system. While Gen Z can find plenty of inspiration through podcasts, TikTok, and other kinds of media, this same drive for business isn't matched by what they're learning in the lecture hall. UK universities in particular don't emphasise entrepreneurship and are often cynical about business. Entrepreneurship needs to be baked into the curriculum and entrepreneurial skills developed before students enter the workforce. How else can we create competitive businesses on a global scale?

The UK also has a risk-averse culture, which is sceptical of budding entrepreneurs. When I told people that I wanted to be an entrepreneur in Morley, I'm pretty sure they thought it was an innuendo for unemployment. We celebrate business successes like Richard Branson, James Dyson, and Alan Sugar, but we don't celebrate the little guy starting out.

There is a greater stigma associated with business failure in the UK, which can deter young people from starting their own ventures. We need to talk more about failure, and what can be learned from it. That not only starts in schools, but also in businesses and government too. In addition, UK investors need to increase their risk appetite and acceptance of failure. Their anxiety rubs off on prospective founders and how they run their businesses, discouraging people from taking risks.

Ultimately, playing it safe does not equal progress. To really drive innovation, we need to encourage bold risk-taking from the UK's young talent.

With more support in the right places, young entrepreneurs can power the future of the UK. It's up to those investors and entrepreneurs who have made it, to push for better funding and accessible networks for young talent. Only then can young entrepreneurs take big bets on the big ideas that will drive progress for everyone.

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