As a result of the ever-changing business landscape in the UK, as well as the continuous advancements in technology such as AI, several new business ideas have sprouted up across the country. According to Harvard Business Review’s findings in 2018, the most successful entrepreneurs start their venture at the age of 45. This was shortened by 11 years to 34 years old, in a new book published last year.
But, what’s the median age of entrepreneurs in the UK?
Interested in finding out as a part of their business loans report, the financial experts at money.co.uk investigated company and business owner data from Companies House to reveal the median age of UK start-up owners across 21 sectors.
Industries with the youngest business owners
|
Industry |
Median age of start-up owners |
The majority of business owners are aged… |
|
|
Year |
Months |
||
|
Retail and repair |
34 |
0 |
20-29 |
|
Transportation and storage |
35 |
6 |
30-39 |
|
Arts, entertainment and recreation |
36 |
2 |
30-39 |
|
Other service activities |
37 |
0 |
30-39 |
|
Information and communication |
37 |
2 |
30-39 |
|
Construction |
37 |
5 |
30-39 |
|
Water supply; sewerage, and waste management |
37 |
9 |
30-39 |
|
Manufacturing |
37 |
10 |
30-39 |
|
Administrative activities |
37 |
11 |
30-39 |
|
*Media |
38 |
5 |
30-39 |
|
Accommodation and food service activities |
39 |
0 |
30-39 |
|
Agriculture, forestry and fishing |
40 |
0 |
50+ |
|
Education |
40 |
2 |
30-39 |
|
Activities of households as employers |
41 |
0 |
30-39 |
|
Public administration and defence |
41 |
1 |
30-39 |
* A custom sector defined using publishing, broadcasting, video, music and tv production divisions
For the complete data of 21 industries analysed, please click here.
Research has found that the retail and repair industry has the youngest owners, aged 34 years old at the time of founding. Hastened by the pandemic, the retail industry has accelerated its digitalisation, with Gen Z entrepreneurs infiltrating the sector. Therefore, the percentage of owners in their 20s is still 1.35% higher than those in their 30s.
Transportation and storage come next, with the second youngest entrepreneurs (35 years and 6 months old). At eight months older, the median age of business owners in the arts, entertainment and recreation sector stands at 36 years and 2 months.
Founders of the other service activities sectors (ie. dry cleaning, hairdressing etc.) have a median age of 37 years old during incorporation. This is two months younger than the information and communication industry (37 years and 2 months old), and five months younger than construction owners (37 years and 5 months old).
The median age of start-up owners in the UK, by country
|
Country |
Median age of start-up owners |
|
|
Year |
Months |
|
|
England |
38 |
2 |
|
Wales |
38 |
3 |
|
Scotland |
39 |
5 |
|
Northern Ireland |
40 |
9 |
Data can also reveal that millennials are leading the UK’s start-up scene, with the median age of founders across Britain ranging from 38 to 40 years old.
Aged 38 years and 2 months old, English entrepreneurs are the youngest, although only a month younger than Welsh self-starters. Scottish founders are aged 39 years and 5 months old while Northern Irish entrepreneurs are the oldest (40 years and 9 months old).
Tips for small business owners on persevering during challenging times:
Andreea Tufescu, founder of Andreea Tufescu Photography, a London-based professional portrait, event, and wedding photographer says: Be authentic and stay true to yourself – Your own personality, background, skills, experience, and vision are what makes you unique and gives you a strong competitive edge. Realising this is invaluable, because no one else can be you! Also, don’t ever attempt to compete on price if you don’t want to be treated as a commodity. Your dream clients will always find you and will be happy to pay your real worth.
Lucy Jeffrey, founder of Bare Kind, a Kent-based bamboo socks company says: Focus on what you can control, and plan ahead!- It’s easy to lose drive and passion when sales are slow. It’s quiet for us now so we are focusing all of our energy to prepare for Christmas marketing, which means we have less time to worry! To survive in an economy where people are anxious about spending, it’s crucial to believe in the value of your products, and sell the benefit!
Dalia Hawley, founder of Dalia Botanique, a Yorkshire-based organic skincare business says: Engage in your local community – It’s vital to build a relationship with your local community as I’ve noticed they are happier to support local businesses during hard times. Join Facebook community groups and engage with people, as they tend to always ask local groups first for recommendations. Word of mouth spreads fast in communities!
Nicola Rodriguez, founder of Essex House Dolly, an Essex-based professional home organiser and decluttering expert says: Don’t be a defeatist – embrace all challenges – See these tumultuous times as an opportunity rather than a threat to drive new ideas. When you ride the storm, it makes you stronger! Don’t get trapped in the cycle of self-blame, but instead, take time to reflect on your business strategies, and accept your mistakes. Remember to always value yourself and your worth!
Salman Haqqi, personal finance expert in charge of the business loans page, offered guidance to those who aspire to be young entrepreneurs：Many young professionals have dreamed of starting their own businesses, but not all get the ball rolling as they fear the unknown – and the daunting ‘myth’ which highlights a start-up failure rate of 90%. To set foot on your entrepreneurial journey, you will have to have a unique idea and be passionate about it. Oftentimes, inspiration could be found in things you already have a great passion for – what do you think is lacking in that field? Make it your mission to fill in that gap!
It’s also vital to study your market thoroughly and understand your target audience. Ask around to find out if it’s attractive enough for people to pay for it. And most importantly, don’t underestimate the costs of running a business (start-up fees, legal and insurance fees etc.) to avoid financial blunders. Keep in mind that a government-backed start-up loan worth between £500 and £25,000 is available.