As the number of unemployed youths continues to rise, the number of young entrepreneurs in the North West of England has risen by 23 percent. A report produced by Experian, information services company shows that the number of new businesses across the UK started by people aged 16 to 25 years has increased by 22 percent. The report also reveals that the likeliest reason is the rising unemployment, with most seeing no alternative to starting their own company.
However, the report also revealed that almost half the businesses set up will fail within the initial two and a half years. Having a more mature director in the business increases chances of survival due to their experience of managing a business and knowledge of the industry. According to the report, young entrepreneurs are 57 percent more likely to enter the sectors which are “vulnerable”, including catering and hotels, construction and retail.
The deputy chief executive of Greater Manchester Chamber of Commerce, Chris Fletcher believes that the continuing rise of unemployment and lack of opportunities are leading to an increase in new businesses. He also said:
“With the recent launch of the Greater Manchester Business Growth Hub, there has been a focus on how to make better links between experienced business owners and younger start-up entrepreneurs. Getting these vital skills and experiences whilst at a younger age will be valuable for the future success of business in the UK.”
Fletcher emphasised the importance of having business skills in addition to in depth knowledge of their service or product.
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