FSB Press release: Enterprise Education must become a national priority to unleash the potential of young talent across the West Midlands

FSB and Simply Business call for urgent change to level up opportunities in all parts of the UK and fuel economic growth

A new research paper, released during National Careers Week 2025, calls for enterprise education to be embedded as part of the National Curriculum, to end the ‘frustratingly patchy’ experience across the country and inspire young entrepreneurs throughout the West Midlands.

The study, conducted by small business insurance provider Simply Business and the Federation of Small Businesses (FSB), gives the next generation of small business owners a voice, and provides clear recommendations for how the Government can tap into the potential of young entrepreneurship as a powerful force for the national economy and local communities.

Only around a third (35%) of young people in England say they received business startup guidance or support during their secondary education. The research highlights that youth clubs are stepping up where formal education falls short. Among those who received business support from a youth club, 83% found it useful.

While nearly 60% of young people nationally express an interest in owning a business, only 13% in the West Midlands manage to turn this aspiration into reality.

Just over half (52%) are motivated by the potential to make money, highlighting the significant number of young people who aspire to create wealth and raise their standard of living.

The research also highlights an altruistic streak – with 18% in the region starting or considering starting a business specifically to help their local community.

The research found that 25% of young people in the region have a side hustle. Nationally, young people from lower socio-economic backgrounds (26%) are less likely to have a side hustle compared to those from higher socio-economic backgrounds (32%).  

The report reveals a number of key barriers:

• Lack of role models: 12% of current or aspiring entrepreneurs in the West Midlands say that seeing other entrepreneurs would boost their confidence, yet over a third have not had any guidance or support from local entrepreneurs or businesses.
• Access to finance and financial acumen: 20% of young people across the UK say they have difficulty in accessing finance to run their business, with 7% resorting to payday loans. In response to this precarious financial situation, evidence shows that payday lenders are increasingly using social media to target young people who are often vulnerable to their lack of financial acumen and credit history. 31% of young people who own, or would like to own, a business, don’t know how much funding they’d need in the next 12 months. 
• Broader business skills: Almost one in five (19%) of young entrepreneurs say they struggle with knowledge and understanding of marketing, while one in ten (11%) say deciding to employ someone for the first time, such as making financial and legal decisions, is a challenge.

Julie Fisher, UK CEO Simply Business says: “It’s incredible to see the amount of talent, determination and passion bubbling amongst young people in the UK. Every young entrepreneur, regardless of their background or location, deserves nurturing and a chance to succeed.

“At Simply Business, we insure nearly a million small businesses, and we understand the challenges that entrepreneurs face when starting out. Now, it’s time for us all to support the next generation of small businesses. We must break down the barriers and unlock the immense potential of this group – a gold mine of enterprise potential awaits knowledge, inspiration, and guidance.”

Tina McKenzie, Policy and Advocacy Chair at the Federation of Small Businesses said “Young entrepreneurs are a crucial part of the economy, driving innovation and reshaping industries in all parts of the UK. This research has delved into the challenges that young business owners currently face and how their success can be built on, making sure they’re equipped with the right tools to succeed. This is the moment for business, government, finance, and the education sector to come together to move the dial. Investing in enterprise education today will empower the next generation of entrepreneurs to act on their ideas, creating opportunities and jobs that will fuel economic growth.”

In response to the findings, the Federation of Small Businesses has tabled a number of recommendations to government, including: 

• Embed Enterprise Education in the National Curriculum, through a range of activities like entrepreneurship competitions, careers talks from local businesses and internal fundraising.
• Support schools, colleges, and employers to guarantee two weeks’ worth of mandatory work experience for every young person. 
• Make it easier and more flexible for local businesses to engage with schools – many entrepreneurs, including FSB members, want to engage with education institutions, but don’t know how to access schools or colleges
• Create a Side Hustle Allowance – double the tax-free trading allowance, which has been frozen for over seven years, to reflect and encourage young entrepreneurship.  
• Promote relevant free guidance and advice for young entrepreneurs and influencers using social media platforms and online marketplaces, with efforts being led by The Competition and Markets Authority and the Advertising Standards Authority.