New data released by Start Up Loans, part of the British Business Bank, reveals that there has been a surge in entrepreneurship amongst Gen Z in the South East, with the number of loans taken out by young founders increasing by 19% in 2025 as more young people look to start their own businesses.
In 2025, Gen Z founders in the South East have secured more than £2.3m in funding, with the number of loans taken out by young entrepreneurs rising to more than 220 loans in 2025.
Research published late last year by KPMG found Gen Z workers are increasingly leaving corporate careers in pursuit of entrepreneurial opportunities, with 42% leaving to work in startups 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.
Data from Start Up Loans suggests that against this backdrop, Gen Z in the South East are turning to starting their own business. In 2025, Gen Z founders received a substantial 12% of all loans delivered in the South East.
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, added: “The younger generation is entrepreneurial in nature and shouldn’t be underestimated. A key challenge young people will face, though, is affordable access to finance and impartial support, given their lower savings and lack of track record.
“Start Up Loans exists to fill these market gaps, 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 the summer that the Start Up Loans programme has been expanded and will provide more than £1bn of extra lending to entrepreneurs.
The British Business Bank is expanding its geographically-focused initiatives and will be committing £2.6bn of capital to support entrepreneurs wherever and whoever they are to access capital.
Of this increase, £350m has been allocated to two new Nations and Regions Investment Funds in the East of England and South East, expanding targeted finance to every UK Nation and region outside London. These funds are due to go live in the second half of 2026.
