A new study by NatWest and Mettle suggests that while many young people want to start businesses, they are held back by a lack of confidence.
A lack of confidence, not ambition
The survey of over 1,000 aspiring business owners across the country found that 40% of Gen Z feel overwhelmed and unsure where to begin when launching a newbusiness.
Nearly a third (31%) cited fear of failure as a major barrier, while 30% said they worry about balancing their business and personal lives.
Despite this, attitudes towards entrepreneurship remain positive. Around 41% of Gen Z believe it’s best to start a business while you’re young, again highlighting the apparent mismatch between their ambitions and confidence to go it alone.
The report’s authors describe this as a ‘confidence gap’, rather than a lack of ideas. More uncertainty about how to turn those ideas into something viable.
Michelle Prance, CEO of Mettle by NatWest, said:
Gen Z doesn’t lack ideas or ambition – what some young entrepreneurs are missing is confidence. Our role is to remove that uncertainty by offering the tools, guidance and encouragement young people need to believe in themselves and turn their ideas into viable long-term businesses.
Over 14% of those surveyed said that having some clear guidance or a step-by-step plan was the single most important factor in providing the confidence to start a business.
And over a quarter were concerned about having to manage every aspect of a business on their own.
That sense of having to “do everything” was echoed by Chaye Hall, a 25-year-old founder of hair and skincare brand Official True Beauty, who took part in the research.
Hall said: “At the beginning of running your business, you feel like you’re on your own. You are the finance team, the accountant, the content creator – you wear so many hats when you don’t actually have to.”
She added: “There are so many opportunities for support out there.”
NatWest’s findings echo other research suggesting that interest in starting a business among younger people remains strong, particularly as traditional routes into work become harder to access.
See this recent news piece: Gen Z and the next wave of business owners.
Another recent ByteStart report also found strong appetite among younger adults: 25% of 18 to 24 year olds want to start a new business in 2025.
Five tips to overcome the confidence gap
To help bridge the confidence gap, NatWest highlights five practical steps for would-be entrepreneurs:
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- Create a business plan to break ideas into clear, actionable steps.
- Research your market before you start.
- Make sure you understand what your potential customers want.
- Clearly identify your start-up and operating costs before you take the leap.
- Don’t be afraid to ask for help.
More guidance on ByteStart
While the study highlights real anxiety among younger would-be founders, it also suggests the barriers are largely practical in nature.
For many Gen Z entrepreneurs, the challenge is not whether to start a business, but knowing how to start and where to turn for support.
We have a wealth of guides and ideas on the site to help people of all ages to start a new business.
Start with this popular guide: 15 steps to take when you become self-employed.
Survey note: The Start Gap Report was commissioned by NatWest and carried out by OnePoll in September 2025, based on a survey of 1,000 aspiring business owners in the UK. Read it here.
