Young people become less enthusiastic about starting their own businesses the longer they are in the school system, a report commissioned by the Federation of Small Businesses in Wales has revealed.
The FSB Wales: Youth Entrepreneurship report, prepared by Arad Consulting, provides a snapshot of young people’s attitude to entrepreneurship in seven schools across Wales.
Researchers discovered that while young people recognised the likes of Sir Alan Sugar or Sir Richard Branson as being ‘entrepreneurs’ they could not readily identify the real-life entrepreneurs in their own communities, even when they had family members who ran their own business.
The study also found that amongst 11 to 13-year-olds a third had considered starting their own business, but, by the time pupils had reached the age of 17 and 18 that figure had fallen to 18%.
When the pupils were asked what they considered to be the key skills needed to start a business, they identified the ability to manage money along with good communications skills. They also identified that entrepreneurs needed to have a good idea or to be “good at what you do”.
Of the oldest pupils questioned, the majority identified financial risks as the key barrier that would prevent them from starting a business. Location was also raised as an issue, with some older pupils suggesting that being located in rural areas limited the opportunities to start a business. The current economic climate and “not knowing where to start” were also cited as difficulties in becoming entrepreneurs.
Most of the pupils questioned said they had taken part in some form of enterprise education exercise in their school. But while the study did find evidence of a culture of entrepreneurship among pupils, it identified that more focus on entrepreneurship and self employment options in careers advice could encourage more youngsters to go on to start their own business.
The report has been published as evidence in FSB Wales’ submission to the Assembly’s Enterprise and Business Committee’s inquiry into Youth Entrepreneurship.
That submission notes that while the Welsh Government’s Youth Entrepreneurship Strategy (YES) has helped to move forward attitudes to entrepreneurship among young people, more needs to be done to encourage entrepreneurship in practice.
The most recent figures on business birth rates in Wales show 42 business start-ups per 10,000 of population, compared to a UK figure of 64 per 10,000.
Federation of Small Businesses Welsh Policy Unit Chair Janet Jones said: “If Wales is to have a vibrant economy then it is vital that an increasing number of young people go on to start their own businesses.
“It is clear that that a lot of good work has been done in encouraging a culture of entrepreneurialism within our schools, especially among younger teenagers, but we have to build on that and translate that enthusiasm into real businesses being created in communities across Wales.
“At a time when many are concerned at issues of youth unemployment, starting a business may provide opportunities for young people that they may not be able to have working for others, so it is vital that we look at practical measures to help young people take that first step in going into business for themselves.”
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