The UK’s Young Entrepreneurs Report

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A Young Woman Standing In A Room Filled With Fabrics And Mannqeuins, At A Desk Filled With Boxes, Looking At Her Laptop,

Hugh Acland Commercial Director At Capital On Tap

Hugh Acland 05 November 2025 minute read

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Explore the data behind under-25 business founders across the UK, and discover which cities are leading the way.

Our recent research revealed that 82% of 18-24-year-olds in the UK are considering starting their own business, proof that entrepreneurial ambition among young people is rife. Across the country, many are skipping higher education to launch ventures of their own, while others are balancing start-up life with full-time work or studying business at university with entrepreneurship in mind. Age, it seems, is no obstacle to innovation.

To find the UK’s true hotspots for young entrepreneurship, we analysed over 60,000 Companies House records using a custom script. We identified active founders aged 24 and under, then calculated their density per 100,000 residents to rank the nation’s top cities for young entrepreneurs.

To bring our findings to life and explore what it really takes to be a young entrepreneur, we spoke with 23-year-old Monet Davis, founder of the catering company FaceFlavour. They shared their experience of turning a university idea into a thriving business, from the challenge of securing funding to the power of building a brand.

Expert commentary from Hugh Acland, Chief Commercial Officer at Capital on Tap, provides further insight into how aspiring entrepreneurs can leverage regional resources, access funding, and break into industries shaping the future of British business.

The UK cities with the highest concentration of young entrepreneurs

From city centres to coastal hubs, pockets of business ambition are emerging in unexpected places. By comparing the number of under-25 business owners relative to population size, the table below highlights the top ten UK cities with the greatest density of under-25 entrepreneurs in our sample.

Rank	City
1	Manchester
2	Wakefield
3	Canterbury
4	Truro
5	Brighton
6	Chester
6	Durham
8	Birmingham
8	Newcastle upon Tyne
10	Belfast

1. Manchester

Manchester takes the top spot as the UK city with the highest concentration of young entrepreneurs. With around 290 founders aged 24 or under, equivalent to 74 per 100,000 residents. This suggests the city is a bustling launchpad for start-ups and small businesses. Its thriving cultural scene, world-class universities, and a strong sense of community make it the ideal environment for young founders looking to innovate and grow.

2. Wakefield

Wakefield, located in West Yorkshire, ranks second thanks to its high concentration of young entrepreneurs. Our findings revealed around 30 founders aged 24 and under, equal to 41 per 100,000 residents. While this may seem modest compared to Manchester’s 290, Wakefield’s smaller population means it equates to an impressive 41 per 100,000 residents.

This density of young founders highlights a strong local appetite for entrepreneurship, supported by a community that makes starting up feel achievable. Its proximity to Leeds gives founders access to wider business networks, while its affordability and sense of space create the right conditions for new ventures to take off.

3. Canterbury

Canterbury ranks third, with one of the highest densities of young founders in our research, around 36 per 100,000 residents. Known for its historic charm and vibrant student population, the city is quietly becoming a proving ground for young entrepreneurs. Supportive local networks and community-led funding initiatives give founders the confidence to experiment and grow at their own pace.

It might come as a surprise that England’s capital, London, falls outside the top ten. While our data identified around 1,200 founders aged 24 and under, more than any other UK city, its sheer size lowers the concentration, placing it 17th overall.

Smaller coastal cities, meanwhile, are punching well above their weight. Truro, for instance, outperforms major hubs like London, Bristol and Glasgow in our analysis. Its inclusion, alongside Canterbury and Wakefield, suggests a wider shift that the next generation of founders is thriving beyond the UK’s biggest business centres.

The most popular industries for under-25 entrepreneurs

From digital retail to creative services, the UK’s youngest founders are driving innovation across a range of industries. Using Companies House SIC code data, the table below highlights the most popular sectors for young entrepreneurs from our dataset for 2025.

Rank	Business sector
1	Retail sales via mail order houses or via the Internet
2	Hairdressing and other beauty treatments
3	Take-away food shops and mobile food stands
4	Advertising agencies
5	Freight transport by road
6	Buying and selling of own real estate
7	Management consultancy activities other than financial management
8	Retail sale of clothing in specialised stores
9	Business and domestic software development
10	Information technology consultancy activities

1. Retail sales (mail order/Internet)

In our sample, retail via mail order or the Internet ranks as the most popular industry for young entrepreneurs. This sector (SIC code 47910) spans a wide range of online and direct-to-consumer sales, from e-commerce stores and subscription boxes to social-media-driven retail and online marketplaces like Etsy, Depop and Shopify.

For many young founders, this sector easily captures everything valuable in a start-up: flexibility, creativity, and low barriers to entry. With minimal need for physical premises and the ability to build a brand from a laptop or smartphone, digital retail has become the natural launchpad for entrepreneurial ambition. Many begin small, selling handmade products, vintage clothing or niche goods, and quickly scale through social media and online advertising. Its accessibility, speed and reach can explain why it tops our list, with 416 businesses operating in this space.

2. Hairdressing and other beauty treatments

Hairdressing and other beauty treatments rank as the second most popular industry for young entrepreneurs in our research, with 109 under-25-led businesses operating in this space. This sector (SIC code 96020) includes everything from barbering and make-up artistry to skincare and nail services.

For many under-25s, beauty represents both artistry and opportunity. With the ability to begin from home or offer mobile services, it’s an accessible route into self-employment. Platforms like Instagram and TikTok have become virtual shopfronts for young stylists and beauticians, helping them showcase their work, attract clients and build strong personal brands.

3. Take-away food shops and mobile food stands

Take-away food shops and mobile food stands take third place among the most popular industries for young entrepreneurs in our sample, with 102 businesses led by under-25s. This category (SIC code 56103) ranges from pop-up food stalls and vans to independent takeaways and market vendors.

For many young business owners, food is the perfect mix of creativity and connection. The rise of pop-ups, delivery services and mobile kitchens has made it possible to test new ideas fast and build a following and community from the ground up. Those who stand out do so through originality and adaptability, whether by reimagining street food favourites or tapping into emerging flavour trends.

How 23-year-old founder Monet Davis turned a university idea into a thriving catering business

As more young founders seem to turn their ideas into food ventures, one entrepreneur making her mark is Monet Davis, founder of Faceflavour, a UK-based catering company redefining what corporate catering can look like.

Four years ago, at just 19, Monet Davis decided to take control of her future and start her own business. What began as a way to bring her local community together through food has since grown into Faceflavour, a thriving venture built on passion, creativity and connection.

Monet Davis founder of Faceflavour, smiling into the camera

Starting with a clear mission

Monet founded the company with one clear mission: to bring culturally diverse food into professional spaces. She says: “If sandwiches and wraps are welcome in boardrooms, then jerk chicken and rice & peas should be too.” Her vision was to use food as a bridge between communities, making corporate events more inclusive and representative of the people they serve.

Turning opportunity into action

The defining moment that opened the doors to entrepreneurship came when Monet won a scholarship at the University of Nottingham, which offered her a paid placement year to work full-time on her venture. Monet says: “I knew I wouldn’t get that kind of opportunity again. It gave me the push I needed to take being an entrepreneur seriously.”

Supported by her family, mentors, and university network, Monet immersed herself in business education through the Ingenuity Lab and EPIC Programme, later winning the 20/20 Levels pitch night competition. These opportunities provided funding, mentorship, and community, three things she credits as vital to her early success.

Learning to lead and grow

Starting a business so young came with challenges. Monet says, “One major challenge was accepting that I still had so much to learn. Rather than seeing that as a setback, I embraced it. I put myself in rooms where I could learn, business schools, networking events, and that mindset of continuous learning has helped me evolve as a business owner.”

At times, Monet faced doubt from others because of her age, but she used those moments as motivation: “I had to prove myself through action. The more I took on, the more confident I became.”

Building confidence

Monet’s journey also highlights the importance of representation and mentorship: “Being invited by Beleve UK to speak on a panel about my entrepreneurial journey was one of my proudest moments. It reminded me why I started Faceflavour, to show that young women who look like me can lead successful businesses too.”

Her advice for other young founders: “Just start. You won’t learn how to run a business by standing on the sidelines; you learn by doing. Take that chance on yourself, believe in your vision, and use the resources available to you.”

“My entrepreneurial journey has taught me that you truly get out what you put in. Success is about consistency and staying committed even when the journey gets tough.”

Capital on Tap shares practical guidance for young entrepreneurs starting a business

Starting a business young is both exciting and challenging. From balancing studies and side jobs to securing funding and customers, early entrepreneurship demands creativity, courage, and careful financial planning.

Hugh Acland, Chief Commercial Officer at Capital on Tap, shares actionable advice to help young founders build smart financial habits, find support, and turn passion into profit.

Hugh comments: “Young entrepreneurs bring fresh energy and ideas to the business world, but finding the confidence to start can take time. Understanding how to manage cash flow, access local funding, and make smart investments early on helps build businesses that last and grow alongside their founders.”

1. Start with something you truly care about

The best businesses often begin with passion. Choosing an idea you believe in makes it easier to stay motivated through long hours, tight budgets, and early setbacks. Passion fuels persistence, and persistence builds success.

2. Get hands-on experience

Before diving in, gain experience in your chosen field, whether through part-time work, volunteering, or freelancing. First-hand knowledge helps you understand customer needs and identify opportunities others might miss.

3. Explore local grants and start-up funding

Many regional growth hubs, councils, and universities offer funding and mentorship for young entrepreneurs. From start-up loans to pitch competitions, these schemes can provide valuable seed capital and open doors to new networks.

4. Build financial discipline early

Even the smallest start-up needs structure. Using a business credit card can help track expenses, earn cashback, and spread the cost of early investments while maintaining healthy cash flow. Learning to budget effectively will give you confidence and flexibility as your business grows.

5. Find mentors and build your network

Every entrepreneur benefits from guidance. Seek out mentors who can share their experiences and help you avoid costly mistakes. Attend local business events, connect with peers online, and use platforms like LinkedIn to expand your professional circle.

6. Be open to feedback

Success rarely happens in a straight line. Be prepared to pivot, refine your product, or adjust your pricing based on what you learn. Constructive feedback, from customers, mentors, or even competitors, can help sharpen your strategy and strengthen your business.

7. Reinvest for growth

As revenue starts coming in, reinvest in what’s working, whether it’s new tools, marketing, or skills training. Using business credit card rewards like cashback to fund your next stage of growth can help you scale sustainably while staying in control of your finances.

Hugh concludes: “Being a young entrepreneur isn’t about having all the answers; it’s about being brave enough to start. With smart financial choices, a supportive network, and a willingness to keep learning, the next generation of business founders can achieve remarkable things.”

Discover more insights and financial tools for small businesses at Capital on Tap.

Sources and methodology

Capital on Tap analysed over 60,000 active UK businesses listed on Companies House to identify founders aged 24 and under. Using a Python script connected to the Companies House Advanced Search API, the analysis focused on companies incorporated within the past five years to reflect the most recent wave of young entrepreneurial activity.

To ensure accuracy and fair comparison across regions, several rules and filters were applied:

Active, UK-based companies only: The dataset included only companies with an “active” trading status and a verified UK-registered address. Businesses registered solely through offshore entities or without a valid UK location were excluded.
Founders aged 18-24: Director ages were calculated using the month and year of birth data provided by Companies House. Only those aged between 18 and 24 at the time of analysis were included. Directors with incomplete or missing date-of-birth information were removed.
Current directorships only: Resigned directors were excluded, ensuring that only founders actively involved in their business remained in the dataset.
Removal of mail-forwarding: To prevent skewed location data, addresses associated with mail-forwarding services or large virtual office providers were manually reviewed and excluded from the final results.
Unique founder count: Founders appearing on multiple company records were counted once to prevent duplication.
Population-adjusted results: To ensure fair comparison across cities of different sizes, Companies House data was cross-referenced with ONS population figures. The number of young founders per 100,000 residents was then calculated for each location.
Industry classification: Each company’s SIC code was mapped to its corresponding industry category, allowing analysis of the most common sectors among under-25 founders.