The age of people starting new businesses in Bristol is decreasing with four in 10 start-ups in the city set up by people under 30, new data suggests.
Almost 4,900 new companies were registered in the city last year with around 2,000 of these formed by young entrepreneurs, according to figures from The Accountancy Partnership.
This reflects a rise within the last five years as under-30s accounted for 30% of the number of new ventures started in 2017.
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Uncertainty and economic disruption caused by the pandemic have seen a slowdown in recruitment, with 32% fewer vacancies in 2020 compared to the previous year according to the Office for National Statistics.
Lockdown restrictions have also impacted on sectors that traditionally employ younger people, including retail, hospitality and tourism.
The Accountancy Partnership said that more than two in 10 (23%) new business owners in 2020 created their business after being made redundant or furloughed from their current jobs.
It’s managing director Lee Murphy said that while the pandemic was playing a part in boosting entrepreneurialism among young people born in the mid to late 1990s, known as Generation Z, the rise was also reflective of a longer trend of social media making starting a business more achievable.
Since 2017, there has been a 206% increase in 16-to-20-year-olds and a 72% increase in 21-to-30-year-olds registering as sole traders.
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Mr Murphy said: “It’s incredible to see the enterprising nature of Gen-Z and younger millennials. The barriers to starting a business are lower than ever, with the ease of selling products and services online with little to no initial costs.
“From our data it is clear to see how each age group has been affected by the pandemic in relation to entrepreneurialism, turning to enterprise because their other options are so limited.
“Between 16 and 30 years old is typically an uncertain time of life in normal circumstances as people decide whether to pursue further education or where to start their career. Closures in retail and hospitality, and money worries surrounding university have made this year even more trialling, triggering this rise in young people starting businesses."
Mr Murphy said the pandemic had also highlighted the importance of businesses having a digital presence, with social media becoming a petri-dish of new start-ups in the last 12 months. Some 31.2% of businesses in 2020 started on Facebook and 30.9% on Instagram, the research found.
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PHD student Kaya Sinclair, 28, started making artwork and jewellery using resin moulds as a hobby during lockdown and sharing pictures and videos of her handiwork on Instagram and YouTube under the name Nalla and Goat.
After receiving messages from followers wanting to buy her work Ms Sinclair, who is studying robotics and autonomous systems at both Bristol University and the University of West England, is now looking into registering Nalla and Goat as a business as she is now making money from her side project.
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Despite saying there were employment opportunities in the field she is training in, Ms Sinclair said she would prefer to make her own business her full-time occupation.
“I think there are jobs for me in robotics as its one of those up and coming industries, so I’m not necessarily worried about my ability to get a job, it’s just I like the creativity I get from doing this project
“Resin is quite expensive, but by making a business out of it I’ve been able to funnel the money back into it and I have this huge creative thing on the side which i would not have been able to do as wouldn't have been able to afford it.
“When starting up a new business either you have to go full-time and throw everything into it and start making money straight away or you do it like I have, where you slowly do it part-time and see whether it’s viable, and I’m starting to see that it is viable.
“If I could do it full-time I would, it's so much fun.”
According to the Accountancy Partnership, males accounted for over 70% of new sole traders in total, and this was reflected in every age group. The research found that among 16-to-20-year-olds women were 80% less likely to start a new business than men.
Last year Bristol was named the by a report from independent think tank Institute for Youth Policy, which described the city as a "growing European tech hub."