When reading the recent Gen Entrepreneur Report 2025 by Simply Business (source), it got me thinking about the huge appetite younger people have for starting their own businesses—and the significant challenges they face. The report highlights that a remarkable 64% of individuals aged 18-35 want to be their own boss, yet only 16% have taken actionable steps towards entrepreneurship.
So, what’s stopping them?
The reality is that many young entrepreneurs face financial vulnerabilities, a lack of support, and significant knowledge gaps when trying to build a sustainable business.
The Financial Challenges Young Entrepreneurs Face
Starting a business is exciting, but it also comes with financial risks—especially for young entrepreneurs. The Gen Entrepreneur Report 2025 revealed that:
34% of young business owners have resorted to payday loans to fund their ventures, highlighting a worrying level of financial vulnerability.
39% struggle with financial management, which can lead to cash flow issues and business failure.
36% find it difficult to access funding, which prevents them from growing their businesses successfully.
Without the right support, many young entrepreneurs face the tough reality of running out of money before their business even has a chance to succeed.
Why Franchising Could Be the Solution
Franchising offers young entrepreneurs an alternative route into business—one with structure, support, and a proven model for success. Here’s why franchising is worth considering:
1. A Proven Business Model
Starting from scratch is risky. With a franchise, you buy into a model that already works. It’s been tested, refined, and successfully operated by others, reducing the trial-and-error phase that independent startups face.
2. A Recognised Brand
Building a brand from the ground up is expensive and time-consuming. Franchises come with established branding and customer trust, giving young entrepreneurs a head start in marketing and sales.
3. Training and Ongoing Support
One of the biggest struggles for new business owners is not knowing what they don’t know. A good franchisor provides comprehensive training and ongoing support, ensuring that young franchisees understand everything from operations to marketing and financial management.
4. Easier Access to Funding
Many franchises have pre-approved financing options or established relationships with lenders. This can make it easier for young entrepreneurs to secure funding compared to starting an independent business.
5. Lower Risk, Higher Success Rate
Franchising offers a much higher success rate than starting an independent business. Since franchisees follow a proven system, the risk of failure is significantly lower.
According to the British Franchise Association (BFA), franchising offers a significantly higher success rate compared to independent startups. The BFA reports that new franchisees have a success rate exceeding 95%, whereas independent startups have a success rate of approximately 60%.
Additionally, the BFA notes that franchise failure rates have consistently remained below 5% for over two decades.
Bridging the Knowledge Gap
Beyond financial challenges, many young entrepreneurs struggle with business knowledge and practical skills.
A franchise can help fill in these gaps by providing:
A step-by-step business blueprint—everything from operations to marketing is outlined.
Mentorship from experienced franchisees, helping young entrepreneurs avoid common pitfalls.
Ongoing updates and innovation—franchisors invest in continuous improvement, so franchisees don’t have to reinvent the wheel.
Encouraging Young Entrepreneurs to Explore Franchising
While there are increasing calls for better government support which I will update on when I know more, young people overall need to know that franchising is an option.
If you’re a young person considering entrepreneurship, or even if you’ve started a business but are struggling with financial and operational challenges, franchising could be a game-changer.
Want to Learn More?
If you’re interested in exploring franchising as a way to start your own business —without the usual financial and operational pitfalls—i’d love to hear from you.
Book a call with me here – whether this would be via my franchise model, activ marketing, or if you just want to learn more about the world of franchising, I am happy to chat.
