From Depop drops to TikTok-led video content businesses, Britain’s Gen Z is quietly building an alternative economy – one powered by side hustles, digital creativity and financial self-reliance. This new wave of entrepreneurial activity isn’t a niche subculture or passing trend, it reflects a fundamental shift in how young people are working, earning and defining success. Ahead of Global Entrepreneurship Week 2025, new research from Young Enterprise reveals that 82% of Gen Z (16–24-year-olds) have already taken part in some form of entrepreneurial activity, signalling a fundamental shift in how the next generation approaches work and earns money.

Gen Z Side Hustles Are Turning Into Careers

The new research reveals that there is no question about Gen Z’s entrepreneurialism. Over eight in ten 16-24-year-olds have already engaged in entrepreneurial activity and more than half say they have used resale apps, while 39% have sold products or services online. A further 37% say they have had another side hustle or part-time venture.

The data suggests that for many young Brits, side-hustles aren’t just extra income – they are careers in waiting. The new surveys show Gen Z increasingly reject the traditional ‘career ladder’ and favour multiple income streams or making their own path, on their own terms. What was once dismissed as a hobby or extra pocket money has become a legitimate economic force. Side hustlers in the UK now earn an average of £5,420 a year, and more than half of Gen Z say their side hustle sometimes makes more than their main job.

Gen Z Are Building Businesses But Don’t Feel Backed By The System

Research from Young Enterprise shows just how embedded side hustles have become in Gen Z culture. Fifty-eight per cent of young people say they’ve used resale platforms like Vinted or Depop, and 37% have already run a side hustle or small venture of their own. This isn’t just about personal gain either – 71% believe entrepreneurs are vital to the UK’s future economy, and 76% agree that being enterprising improves social mobility.

Yet despite being Britain’s most entrepreneurial generation, many don’t feel fully supported. Only 57% of Gen Z believe the UK has a thriving entrepreneurial culture, compared with 69% among the wider population highlighting a clear disconnect between their ambition and the structures in place to help them succeed.

From Funding To Fear – The Barriers Behind Gen Z Entrepreneurship

Almost half (46%) of young people say a lack of savings or start-up capital stops them from launching their ideas. Forty per cent fear failure, and 34% worry about financial instability if their business doesn’t work. Although social platforms make it easier to start, 15% of Gen Z say they don’t have access to mentors or business networks, leaving many to build their ventures alone.

The new studies show support from family and friends is still one of the strongest enablers of success. Seventy per cent of Gen Z say emotional or financial backing from loved ones is essential but not everyone has that safety net, which widens the gap between those who can take risks and those who can’t.

Gen Z understands that knowledge and financial literacy matter. More than half (51%) say knowing how to earn and manage money is key to entrepreneurial success, yet 28% still cite a lack of skills or knowledge as a barrier. Sixty-two per cent believe work experience during education helps inspire entrepreneurship, while 58% say exposure to enterprise programmes at school or college helped build confidence.

Even Without Support, Gen Z Still Sees Opportunity

Despite these challenges, Gen Z remains optimistic. Nearly two-thirds (64%) believe they have more opportunities to become entrepreneurs than previous generations, and 76% believe entrepreneurship can improve social mobility. For many, side hustles aren’t a rejection of traditional work – they’re a reinvention of it.

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Nearly two-thirds (64%) of young people believe they have more opportunities to become entrepreneurs than previous generations. And 76% of young people agree that being enterprising improves young people’s chances of social mobility.

Speaking about the findings, Sarah Porretta, CEO of Young Enterprise said: “The UK has no shortage of ambition or creativity. In fact, our research shows that our entrepreneurial spirit is thriving. However, we also know there are barriers to progress – particularly for young people from disadvantaged backgrounds – without the benefit of family or professional networks.

“Confidence and opportunity go hand in hand – when young people are given space to take risks, learn from failure, experience enterprise first-hand, and are supported with an accessible network, they are better able to progress. We must invest in a system that ensures equitable support for young entrepreneurs, whatever their starting point, to ensure that entrepreneurship can be a key driver for social mobility.”

The Centre for Entrepreneurs presents Global Entrepreneurship Week 2025, taking place from 17-23 November 2025. Global Entrepreneurship Week (GEW) is a nationwide celebration of entrepreneurship, innovation and new business thinking. What began in the UK in 2004 as Enterprise Week has now grown into a global movement celebrated in more than 180 countries, reaching over 10 million people annually. The week promotes a culture of entrepreneurship and spotlights its impact on economies and communities worldwide. This year’s theme, ‘Together We Build’ focuses on the power of collaboration, community and shared ambition in driving opportunity and social change.