Almost half of UK adults are thinking about starting a business in 2025

The entrepreneurial spirit in the UK is reaching new heights. According to our latest StartUp Ambition report, nearly half of UK adults (47%) are considering starting a business or side hustle in 2025 – a significant increase from previous years, including a rise of 12% on 2024.

For small business owners and budding entrepreneurs in the UK, this signals a cultural shift where self-employment and small business ventures are becoming mainstream career aspirations.

What's driving the entrepreneurial surge?

The report reveals the main motivators behind this trend: 33% of respondents cited a desire to earn extra cash to keep up with rising living costs, while another 33% aim to monetise a skill or hobby.

Notably, younger generations are leading the charge. Among 18- to 30-year-olds, 62% are planning to start a business, and over half (51%) of those aged 31–40 are similarly ambitious.

Emma Jones CBE, founder of Enterprise Nation, highlights this as a pivotal moment:

"What we're witnessing is nothing short of a cultural shift. The number of people who want to start a business just keeps on expanding every year, it's incredible.

"It demonstrates that new generations now entering the world of work see starting a business as a mainstream career option and it's something that the majority of working-age people expect to do at some point in their life.

"What's also behind this is a decade of wage stagnation – people want to increase their income while doing something they love or are good at. But it's also about the accessibility of technology and good-quality business support that helps people to get started and grow."

Tackling challenges and finding inspiration

Interestingly, when asked about entrepreneurial role models, 17% said they were most inspired by family members, while over a third found no relatable public figures. This underscores the importance of tailored business support and relatable success stories.

Despite the current economic challenges, job insecurity was not a major driver for most would-be entrepreneurs. Only 6% mentioned job loss fears as a motivator, and fewer people are starting businesses to supplement part-time work or zero-hours contracts (down from 33% in 2024 to 9% in 2025).

Instead, personal fulfilment and passion projects are driving many. For instance, 36% of 18- to 24-year-olds are motivated by doing something they enjoy, and women are leading the way in combining side hustles with other responsibilities – 59% compared to 49% of men.

Popular sectors for start-ups

Food and drink (14%) and arts and crafts (15%) remain hot sectors for new businesses, while beauty dominates among younger entrepreneurs aged 18 to 24 (16%).

Tech start-ups are thriving in hubs like London and Newcastle-upon-Tyne, while Liverpool is emerging as a hotspot for manufacturing businesses.

Cities like Liverpool, Glasgow and Cardiff are home to aspiring entrepreneurs particularly motivated by financial necessity. For example, 43% of Liverpudlians cited worries about paying the bills as a reason to start up, compared to 41% in Glasgow and 38% in Cardiff.

Overcoming barriers with support

Many budding entrepreneurs are looking for business support, particularly younger generations who are concerned about funding and navigating economic challenges. Yet, older age groups (51 to 64) are the most unsure about what resources are available to them.

To meet this growing demand, organisations like Enterprise Nation and partners such as Constant Contact, Monzo Business, GS1 UK and others are providing crucial support.

Through these collaborations, we can make sure that start-ups have access to tools, mentorship and funding opportunities to thrive.

Earning expectations

The report also highlights income expectations for first-year businesses. Full-time entrepreneurs anticipate earning an average of £34,000 in their first year, although women's expectations remain significantly lower than men's (£28,658 vs. £37,865). For side hustlers, expected earnings average £5,765 – a slight increase from 2024.

> Read the 2025 StartUp Ambition Report

> Download the StartUp Ambition Infographic

A real-life start-up story

Aspiring entrepreneurs can find inspiration in stories like Daniella Conway's. London finance associate Daniella is set to launch her web app TRVLR in January 2025.

It's the culmination of 12 months' work, including raising angel investment and going through an intensive six month-long accelerator programme – all while holding down a full-time job for a city investment company.

The 29-year-old travel enthusiast came up with the idea for TRVLR – a travel platform for people who plan and book group trips with their mates – because she needed the service herself and couldn't find anything close.

Daniella says:

"I like travelling and this is a product I needed myself. I was looking for something that could suggest destinations and itineraries and allow group members to vote so the onus doesn't fall on one or two people to take all the responsibility, all the decisions – and all the backlash!"

TRVLR started to take shape after Daniella attended Enterprise Nation's StartUp Show in January 2024.

She adds:

"It was my first step to entrepreneurship. I learned from entrepreneurs and was connected to some helpful advisers. I made loads of notes and registered the company straight away.

"Not long after that, I pitched my idea to an angel investor and was successful. I also found a mentor and joined an accelerator. I've worked on the business at weekends, in the evenings and during any spare time I can find. It's been a whirlwind!"

The investment has allowed Daniella to work with a development agency and incorporate AI into the build, as well as fund a part-time social media freelancer to build momentum for launch.

And it's working, TRVLR already has 1,000 people on its wait list. The plan is that travellers will be able to use the app to plan and book everything, from the hotel to beach club activities, while keeping everything transparent and in one place.

Daniella says:

"What's App chats make everything so complicated. Using TRVLR means everyone gets a say and no-one gets lumbered with the organisation. And voting means everyone is happy.

"Everything is on track for a January launch. I have a half-hour call with my mentor every week and I get help with managing the tech build from a connection at the accelerator. I hope to have a mini team in place early next year to offer tech support. It's incredibly exciting."

Upcoming opportunities to learn and network

If you're ready to take the plunge yourself, our flagship StartUp Show takes place in London on Saturday 25 January 2025. It's the perfect opportunity to learn, network and find inspiration.

Sponsored by major names like Constant Contact, Monzo, GS1 UK and Vodafone Business, the event will feature leading entrepreneurs and industry experts, including BBC broadcaster Emma Barnett and her husband, Jeremy Weil, who co-founded children's activity pack company Colour Your Streets.

You can expect practical advice, inspiring stories and connections to help you turn your start-up dreams into reality. Reserve your spot today and join a growing community of entrepreneurs ready to make 2025 their year of success.