Overwhelming increase in London-based business owners aged 18-25 since the start of the pandemic

It is no secret that during the midst of the covid pandemic, thousands of people decided to start their own business. The under 25’s boomed with innovation during lockdown, and a new study has shown that London was the main hotbed for the young entrepreneurs.

The study by Instant Offices revealed that there was a 33,090% increase in 18-25 London-based business owners since the start of the pandemic. Out of the 24,000 young people that started a business last year, an immense 6,386 were from London. No other city came close to the surge in enterprising start-ups. It was found that e-commerce was the top sector for the under 25’s, with 2,492 starting a business in this growing sector.

Key findings:

  • More than 24,000 young people started a business in the UK last year
  • 800% increase in female entrepreneurs since the start of the pandemic
  • 6,386 of the entrepreneurs were from London
  • Birmingham and Manchester followed, with 588 and 501 young people starting businesses
  • E-commerce was the top sector, with 2492 new business owners
  • Freight and transport came second with 1,147 entrepreneurs in the sector
  • In 2020, companies started by under 25’s grew by 151%, and last year increased a further 111%
  • Companies started by 26-30 year old’s in the same timeframe was 62% slower.

London a hub of entrepreneurial spirit in under 25’s

London’s biggest entrepreneurial industry was e-commerce, which saw 2,492 under 25’s starting a business in the booming sector, and that doesn’t seem to be slowing down. The data from the study has shown that since the start of the new year, 1,821 e-commerce businesses have been started by young people in the UK.

In the first three months of 2022, 16,303 businesses have been started by the under 25’s. This is a massive 253% growth in the first three months of 2022.

Top tips for budding young entrepreneurs

Instant Offices also offered a selection of top tips for budding entrepreneurs:

  • Concentrate on what you are passionate about
  • Good things do not come easy, so be prepared to make sacrifices
  • Have a business plan and stick to it as much as possibly viable
  • Stay focused and do not overcome to setbacks at the beginning
  • Take time management seriously!
  • Utilise business social networks like LinkedIn
  • Do not be afraid to ask for help
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