Why Franchising Could Be the Answer for Young Entrepreneurs

March 6, 2025

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.

I have seen so many social media managers on TikTok recently sharing how tough Q4 is shaping up to be. Many described September as one of their worst months yet, with clients pulling out, content budgets cut, and income dropping overnight.

But that is not what we saw at activ.

And even if it had been evident in some way, it would not have shaken us. Our growth model, and the way we teach our franchisees to run their marketing businesses, is not built on luck or trends. It is built on structure, multiple income stream forecasting, and long term client relationships.

The difference between freelancing and building a business

It frustrates me to see brilliant, creative people losing sleep over the next invoice because they have never been shown how to make their income secure. The issue is not their skill. It is the lack of structure and guidance that turns creative chaos into commercial stability.

No one should live in that feast or famine cycle when they are self employed. I’ve been there, back in 2014 when I started out as a solo freelancer.

When I first went self employed, I had two clients. The contract values together came to £6.5k. At the time, that felt incredible. I thought, this is it, I am winning already.

But no.

Those projects consumed me. I had no time for business development, no processes, and no real boundaries. I was learning client management, pricing, and systems as I went along. What looked like profit on paper turned out to be pain in reality.

That was a massive wake up call.

I realised that you cannot build a business relying on two or three individuals to decide whether you get paid that month. Even though I have been there, I still find it crazy to think that so many self employed marketers are doing exactly that right now.

You need recurring income to create stability

Recurring income is what makes your business predictable. It gives you space to breathe, plan, and grow. It is the foundation that keeps your income steady when projects slow down or clients pause work. And yes, it needs to be secured with a contract!

If your clients are paying you on retainers or subscriptions with clear agreements in place, you are no longer waiting for someone else to decide whether you can pay yourself. You are running a business, not chasing invoices.

Now, the Pareto Principle tells us that 80% of your revenue usually comes from 20% of your clients. That is a natural pattern, but it is also a dangerous one when you only have a handful of clients in total. If one of those key clients leaves, your income takes a huge hit.

The goal is not to fight Pareto, but to rebalance it. Have enough clients in your mix that if one pauses, your bank account does not. A larger client base means smaller percentages per client, and that gives you security.

A forecast should be used to build a healthy mix of income streams that blend subscriptions, monthly fees, retainers, and one off project work. This approach gives balance, flexibility, and resilience. It allows you to plan ahead rather than live month to month hoping your next reel or pitch fills the gap.

How to build stability using the Solo Power® approach

My #SoloPower® approach is about creating structure and strategy so that freedom is built in, not hoped for.

Here are five actions you can take right now to step out of the feast or famine cycle.

Build recurring revenue first, not last
Even if your retainers start small, secure that predictable base before solely chasing project work. Stability gives you freedom to be creative again.
Review your pricing every quarter
If you are charging the same as you were six months ago but working harder, it is time to adjust. Value your expertise.
Set clear boundaries and processes
You teach clients how to treat you. Scope creep and time thiefs are business killers. Clear communication and contracts are essential.
Use a forecast
See what your next three months look like. Map your recurring income and identify gaps early. When you plan, panic disappears.
Stay connected to others in business
Isolation is dangerous. Community keeps you accountable, inspired, and supported when things get tough.

From feast or famine to freedom

The feast or famine cycle is not a test of resilience. It is a sign that your business is missing structure.

Freedom does not come from working alone. It comes from systems that protect your time, income, and creativity.

That is exactly what I teach through #SoloPower®, an approach built to help solo marketers and freelancers create security, community, and recurring income that lasts.

If you are ready to take the next step, my next FREE guide on How to Combat The Time Ceiling And Build Financial Security shows how to create sustainable structure in your business.

👉 Workbook- How to Combat The Time Ceiling and Build Financial Security