The stereotype of “lazy, entitled Millennials” couldn’t be further from the truth, as we can see from the data gathered about entrepreneurship in the UK. In the past 12 months, entrepreneurs in the 31-40 age group have started over 500,000 businesses, more than any other generation in the workplace.
Older business owners vs up-and-coming entrepreneurs
Research shows that Millennials in their 30s and 40s are most likely to start their own businesses. Older Gen X’ers and Baby Boomers follow this in the 51-and-over age group.
| # | AGE GROUP | BUSINESSES STARTED IN THE PAST 12 MONTHS |
| 1 | 31-40 | 503,020 |
| 2 | 51+ | 457,505 |
| 3 | 41-50 | 416,021 |
| 4 | 26-30 | 259,726 |
| 5 | 18-25 | 93,622 |
Gen Z currently has the lowest rate of entrepreneurship. However, this is likely because many young adults in this age group are still completing their studies or looking to gain industry experience by working for a company before striking out on their own. Meanwhile, older generations will typically have the experience and confidence to establish their own businesses.
This could soon change, as the UK is seeing a surge in female entrepreneurs under 30. Women aged 18-30 launched over 13,000 new businesses across the UK in 2022.
Top industries by age group: Real estate and retail
Real estate is the most popular industry for Millennial entrepreneurs, followed by online or mail-order retail and management consultancy.
| # | TOP BUSINESSES FOR ENTREPRENEURS AGED 31-40 | NUMBER OF OFFICES |
| 1 | Buying and selling of own real estate | 35,287 |
| 2 | Other letting and operating of own or leased real estate | 34,543 |
| 3 | Retail sale via mail order houses or via internet | 24,298 |
| 4 | Management consultancy activities other than financial management | 16,946 |
| 5 | Information technology consultancy activities | 13,187 |
| 6 | Other service activities NEC. | 12,710 |
| 7 | Freight transport by road | 11,744 |
| 8 | Other business support service activities NEC. | 11,737 |
| 9 | Development of building projects | 11,196 |
| 10 | Activities of other holding companies NEC. | 9,874 |
Retail and real estate lettings were also the top industries preferred by other age groups. Data shows that younger generations are likelier to start online retail businesses, while older age groups are likelier to let or operate real estate.
| AGE GROUP | #1 BUSINESS | NUMBER OF OFFICES |
| 18-25 | Retail sale via mail order houses or via internet | 12,885 |
| 26-30 | Retail sale via mail order houses or via internet | 21,686 |
| 41-50 | Other letting and operating of own or leased real estate | 39,343 |
| 51+ | Other letting and operating of own or leased real estate | 57,772 |
Top UK cities for entrepreneurs: London leads the way
Where are most of the country’s self-starters based? London, Manchester, and Birmingham were the top 3 most entrepreneurial cities across all age groups.
| TOTAL COMPANIES STARTED BY AGE GROUP | LONDON | MANCHESTER | BIRMINGHAM |
| 18-25 | 2,239 | 277 | 249 |
| 26-30 | 9,983 | 1,202 | 809 |
| 31-40 | 21,850 | 2,055 | 1,588 |
| 41-50 | 17,523 | 1,749 | 1,327 |
| 51+ | 16,466 | 1,398 | 1,071 |
Glasgow, Bristol, Liverpool and Leeds were also among the top 10 locations for entrepreneurs across all generations.
Thanks to remote working, it’s more than just the big cities experiencing an entrepreneurial boom. Numerous small UK towns saw a significant increase in new businesses started between 2021 and 2022.
Year-on-year entrepreneurship growth in the UK
It’s also worth noting that the biggest year-on-year increase in entrepreneurship in the past decade was between 2018 and 2019. Growth between 2021 and 2022 was also notably high.
From 2018 to 2019, businesses started by entrepreneurs in the 31-40 age group grew by 1098% year on year. This may have been due to the uncertainty around Brexit, leading more people to push for self-sufficiency by starting their own ventures. It may also have been prompted by the UK’s #beyourownboss2018 campaign, which was geared towards helping startups.
From 2021 to 2022, this generation started a 191% growth in businesses, most likely because of job insecurity caused by the pandemic and the rise in remote working.
Business breakdown by generation
Here’s a quick summary of each generation’s entrepreneurial performance and preferences:
- 18-25 (Gen Z): Started 93,622 businesses in the past year, mostly in online and mail-order retail and mostly based in London. Their biggest year-on-year growth for new businesses was between 2018 and 2019, at 2054%. Smallest YoY growth was between 2015 and 2016 at 2.5%.
- 26-30 (younger Millennials): Started 259,726 businesses in the past year, mostly in online retail and mostly based in London. Their biggest year-on-year growth for new businesses was between 2018 and 2019, at 1656%. Smallest YoY growth was between 2019 and 2020 at 37%.
- 31-40 (Millennials): Started 503,020 businesses in the past year, largely in real estate and primarily based in London. Their biggest year-on-year growth for new businesses was between 2018 and 2019, at 1098%. Smallest YoY growth was between 2019 and 2020, and again between 2020 and 2021, both at 15%.
- 41-50 (Gen X and Xennials): Started 416,021 businesses in the past year, primarily in letting and operating real estate and mostly based in London. Their biggest year-on-year growth for new businesses was between 2018 and 2019, at 860%. Smallest YoY growth was between 2020 and 2021 at 2%.
- 51+ (Baby Boomers and elder Gen X): Started 457,505 businesses in the past year, mostly in letting and operating real estate and mostly based in London. Their biggest year-on-year growth for new businesses was between 2018 and 2019, at 595%. Smallest YoY growth was between 2020 and 2021 at -2%.
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