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Start-ups: THIS UK industry has the youngest entrepreneurs, new study reveals

Byadmin

Aug 11, 2022 #Business, #news

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?

As part of their business statistics 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, as well as by country.

We really hope you find this release useful. If you do end up using it, we ask that you credit appropriately with a link to the business statistics page here at: https://www.money.co.uk/business/business-statistics.

The median age of start-up owners in the UK, by industry

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 comes 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, hair dressing 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-startersScottish founders are aged 39 years and 5 months old while Northern Irish entrepreneurs are the oldest (40 years and 9 months old).

Salman Haqqi, personal finance expert in charge of the business statistics 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%. Here are some useful tips that will help you set foot on your entrepreneurial journey:

  1. Be passionate about your idea

Coming up with a business idea is the first step for every entrepreneur. Oftentimes, inspiration could be found in things you already have a great passion for – from fishing to driving – what do you think is lacking in that field? Make it your mission to fill in that gap!

  1. Research your market – can you turn your idea into a money-maker?

Study your market thoroughly, and understand your target audience. Not only does your idea need to be unique, ask around to find out if it’s attractive enough for people to pay for it. It needs to be profitable for your business to survive!

  1. Organise your finances

It’s vital that you don’t underestimate the costs of running a business (start-up fees, legal and insurance fees etc.) to avoid financial blunders. A government-backed start-up loan is worth between £500 and £25,000, and is available if you pass eligibility checks, and submit a business plan, cash flow forecast and personal survival budget.

  1. Become an expert in your field and build an online presence

It’s important to develop your business knowledge, as well as improve your overall understanding of the field you’re in. Utilise your expertise and provide expert commentary to media outlets, which could in turn, increase your online exposure and attract investors.

Methodology

  1. The creators of the  business statistics page were keen to reveal the average age of start-up owners in each industry across the UK.
  2. Firstly, a seed list of active companies from 2016 to 2022 was obtained from Basic Company Data, while business owner data was collected from People with Significant Control (PSC) data. Both datasets were available on Companies House.
  3. Next, the experts applied the Standard Industrial Classification (SIC) code to all businesses examined, and categorised each company by industry.
  4. They then merged the datasets and identified the age of each start-up business owner at the time of incorporation, by subtracting the company incorporation date from the founder’s date of birth.
    • The first day of each month was used for each business owner’s birthday as only the months and years were listed.
    • PSCs without a date of birth were excluded from the final dataset.
  1. Subsequently, the median business owner age during company incorporation was calculated across each industry. The percentage of owners in the following age brackets were further acquired: 16-19; 20-29; 30-39; 40-49; 50+.
  2. The same method was applied for each incorporation year, and the experts were then able to reveal how the average age of entrepreneurs changes over a seven-year period.
  3. All data was collected on 26/07/2022 and is correct as of then.

END

By admin