Young adults aren’t just turning to their parents for help buying their first home, they are also calling on them for help setting up businesses.
More than one in 10 entrepreneurs over the past year have asked their parents or other family members to help fund their start-up, according to new research from Worldpay.
The research reveals that under 35s are also more than twice as likely as older generations to ask family members for financial support.
Government figures show that since 2001, the number of self-employed young people has doubled, while separate research from F&C Investment Trust claims 30% of millennials aspire to run their own business.
Over a third of the respondents in the Worldpay survey say they believe starting a business is a better investment than going to university – a figure that rises to 43% amongst millennials.
Jack Button is one such young entrepreneur, who runs a café called Jack’s Jetty Snacks in Norfolk. “I always had an entrepreneurial drive, so for me, setting up a business made more sense than going to university. Instead, I worked to build multiple sources of income, from an office job to renovating a flat, and moved in with my parents to save money," he says.
"This hard work meant I had the funds to start my business. My parents and family were a huge part of this, helping me to decorate the café, serve customers, and lend a helping hand where needed – not to mention putting me up when I was saving.
"Having the support of my parents has been a big factor in the success of my business,”
Beverly Power, entrepreneur and founder of The Travelling Cupcake adds: “I would hate for my children to be stuck in a mundane 9-5. I came from a background of entrepreneurs, so I would definitely help my children grow a business if that’s what they wanted to do.
"My oldest has already set up his own business, which I help with where I can! The point I always press with my children is that they can do anything they set their minds to. If that’s education then great, but if not, university can happen at any point in your life – it doesn’t have to be the first step.”
Steve Newton, executive vice president of UK and Europe, Worldpay thinks that with the UK start-up scene defying economic uncertainty and growing over 5% this year, "it’s clear that the UK has a strong entrepreneurial spirit."
"The challenge is to ensure that we’re creating the best environment and enabling access to the right support and tools for small businesses to succeed in the long term.”