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The Rise of Entrepreneurship in the United Kingdom

Todd Crosland Entrepreneurship in the United KingdomAccording to Lord Young, the UK’s enterprise advisor to the Prime Minister, the British invented Entrepreneurship. This comical and historical anecdote is in response to the UK’s booming entrepreneurship market. Lord Young says that the United Kingdom has entered the “golden age of entrepreneurship,” in succession with recent numbers attributing to entrepreneurial success in the UK.

Last year, a record-breaking 500,000 startups were registered in the United Kingdom as more and more young entrepreneurs are starting their own businesses. Since 2006, the number of people starting companies under the age of 35 has risen more than 70%. Young attributes this to the rise of the Internet. Millennials these days are used to the social dynamic bought by computers. They are able to stay better connected at a faster pace than the older generation because they grew up with the technology. What was never anticipated was how easy it is to start businesses with the technological skillset developed by young entrepreneurs.

The cost of starting a company is also at an all time low. The average cost of starting a business comes at 0.3% of gross national income whereas the average is 20% for the rest of the world. This also brings about more failed businesses than normal, as one in every three businesses are failing in the UK.

Young goes back to his anecdote mentioning that the industrial revolution began in England during the 1760s. This marked a period where people were moving from handcrafted materials to machine manufactured methods. This allowed for the development of small businesses which later spread to the United States and Western Europe. Young proclaims that the UK has come back to its roots.

Lord Young has been instrumental in the UK’s entrepreneurial rise as he spearheaded a government program that distributed £100 million to entrepreneurs in the UK. He is also in the middle of initiating government sponsored entrepreneurship education programs across the United Kingdom.