A Hiscox analysis of Companies House data reveals a shift in where – and how – Britain’s youngest entrepreneurs are building businesses.
Almost 400,000 Generation Z company directors are currently active in the UK, growing 78% on average annually
Belfast, Bradford, and Bolton top the leaderboard as Gen Z business growth hubs
Online retail and real estate are among Gen Z’s top trades
Business insurer Hiscox has analysed Companies House data to reveal a sharp increase in companies run by Generation Z (born 1997–2012), with 393,531 active directors under the age of 28 operating UK-registered businesses in 2025.
Please see the report here: https://www.hiscox.co.uk/business-blog/next-gen-z-entrepreneurs-future-business-getting-younger
Financial year
Gen Z director sample count
Yearly change (%)
Gen Z director scaled count
2012-2013
0
0
0
2013-2014
4
0
1,109
2014-2015
4
0
1,109
2015-2016
16
300
4,437
2016-2017
32
100
8,875
2017-2018
43
34
11,925
2018-2019
62
44
17,194
2019-2020
129
108
35,776
2020-2021
139
8
38,549
2021-2022
186
34
51,583
2022-2023
248
33
68,778
2023-2024
351
42
97,343
2024-2025 (up to Nov. 2024)
205
-42
56,853
The number of Gen Z-run businesses has grown by an average of 78% annually, while shareholder appointments have soared even faster, at 128% annually, showing the generation’s growing business acumen.
Gen Z entrepreneurial growth exists outside of London
Location
Average 5-year Gen Z business growth (%)
Belfast
180
Bradford
148
Bolton
100
Cardiff
89
Birmingham
87
Though London remains the biggest hub for Gen Z entrepreneurs (home to 21% of Gen Z-run companies), growth lies elsewhere. Belfast saw Gen Z director appointments grow by 180% over the last five years, followed by Bradford (148%) and Bolton (100%).
Gen Z use property investment as an alternative to home ownership
‘Other letting and operating of own or leased real estate’ ranked as the second-most popular trade, accounting for 4.7% of all Gen Z businesses. This typically refers to companies that buy and hold property and rent it out. Despite many young peoples’ struggles getting on the property ladder, Robin Edwards, a property buying agent at Curetons comments: “High property prices continue to make personal homeownership difficult, so many Gen Z investors see property investment as a different way to enter the market.
“Often these Gen Z investors rent and work in cities like London where it’s expensive to buy, so instead they invest in other regions of the UK with much cheaper property prices that offer better yields and more potential for capital growth.”
Gen Z online retail businesses are booming
‘Retail sale via mail order’ is the top trade Gen Z are exploring accounting for 5.6% of all Gen Z-run businesses. Drop shipping, a retail strategy where an online store sells products without owning the inventory, has trended among younger generations thanks to TikTok. Instead, the retailer forwards the order on to their supplier who ships the product directly to the customer. The term ‘drop shipping’ has 1.6M TikTok posts after various accounts tout it as an accessible business venture for young entrepreneurs.
Compared to the broader UK business landscape, ‘other letting and operating of own or leased real estate’ ranked as the top trade and ‘retail sale via mail’ order placed seventh.
Nick Thornhill, Direct and Partnerships Director at Hiscox says:
“We’ve long believed that entrepreneurial spirit knows no age. The meteoric rise of Gen Z entrepreneurs shows that the next generation is taking an active involvement in business – they’re turning bold ideas into business ventures and taking on influential roles.
“After growing up more or less digitally native, it’s apt that Gen Z directors are most prevalent in an online industry. The internet has revolutionised retail, and with the emergence of e-commerce features on social media, there’s never been more digital avenues for retailers to sell products and services.