Confidence Gap Holds Back Gen Z Business Founders, Report Finds
Research conducted by NatWest and Mettle by NatWest indicates that a lack of confidence is a significant barrier for many young individuals in the UK aspiring to start their own businesses. The study surveyed 1,000 potential business owners between Sep 1…
Research conducted by NatWest and Mettle by NatWest indicates that a lack of confidence is a significant barrier for many young individuals in the UK aspiring to start their own businesses. The study surveyed 1,000 potential business owners between Sep 1 and Sep 4, 2025. Notably, while 41% of Gen Z believe starting a business at a young age is advantageous, 40% feel overwhelmed and uncertain about how to proceed.
Challenges Faced by Aspiring Entrepreneurs
The report highlights emotional and practical challenges. It notes that 31% of Gen Z fear failure, 30% express concern about balancing work with personal life, and 26% are anxious about managing all aspects of a business alone.
Financial concerns are prevalent across different age groups. The report reveals that 26% of Millennials are hesitant to leave a stable income, while 32% of Baby Boomers are wary of starting a business during economic uncertainty. For Gen Z, lifestyle management is a significant concern, with 30% worried about work-life balance.
A lack of confidence in certain skills is also evident. Approximately 17% of potential entrepreneurs doubt their marketing abilities, and 11% lack confidence in drafting a business plan.
The study surveyed 1,000 potential business owners between Sep 1 and Sep 4, 2025.
Social perceptions and cultural influences shape attitudes towards entrepreneurship. The report notes that 32% believe a business must have a unique concept to succeed, while 36% find inspiration from social media despite 21% feeling pressured by online success stories.
Structured guidance and mentorship are identified as critical factors in boosting confidence. Fourteen percent of Gen Z respondents view structured guidance as a catalyst for starting a business, while 15% value mentorship from experienced individuals.
NatWest and Mettle by NatWest offer resources to support new business ventures, including free business accounts, digital financial tools, and access to learning materials. Additionally, the NatWest Accelerator app provides digital and in-person support, alongside a community of business owners.
Based on reporting by techround.co.uk.
