North West sees boom in Gen Z entrepreneurs

New data released by Start Up Loans, part of the British Business Bank, has revealed a surge amongst Gen Z turning away from working for others and becoming entrepreneurs in the North West.

The Bank has found that the number of loans taken out by young founded increased 34% in 2025, as more young people look to start their own businesses. In the last 12 months, Gen Z founders in the North West secured more than £2.75 million in funding, with the number of loans taken out by young entrepreneurs rising to 272 in 2025. The annual value of these loans has risen by 33%.

The British Business Bank’s findings corroborate research published late last year by KPMG, which found Gen Z workers are increasingly leaving corporate careers in the financial services sector in pursuit of entrepreneurial opportunities, with 42% leaving to work in start-ups and 35% going freelance or becoming self-employed. Younger Gen Zs entering the workforce face a tough job market, with ISE data showing a record 140 applications per graduate vacancy, the highest level in over 30 years.

In 2025, Gen Z founders received a substantial 17% of all loans delivered in the North West, the joint second-highest proportion in the UK. Only the South West, at 18% of loans going to Gen Z, had a higher proportion.

Blair McDougall, Minister for Small Business and Economic Transformation, said:

“Age shouldn’t be a limit on entrepreneurial ambition. It’s fantastic to see an uptake in aspiring young people taking advantage of government support to help turn their ideas into thriving businesses.”   

Louise McCoy, Managing Director of Start Up Loans Products, British Business Bank commented:

“The younger generation is entrepreneurial in nature and shouldn’t be underestimated. A key challenge young people face is affordable access to finance given their lower savings and lack of track record. Start Up Loans exists to fill this market gap, and we are proud of the work we have done to help younger people start businesses.”

Since its inception in 2012, the Start Up Loans programme has delivered more than 125,000 loans to business owners across the UK, amounting to more than £1.25bn of funding. The government’s Backing Your Business Plan announced in Summer that the Start Up Loans programme has been expanded and will provide more than £1bn of additional lending to entrepreneurs.