A guide to funding and support for young entrepreneurs

This year’s StartUp Ambition Report highlights a fundamental shift in the ‘why’ of business.  

Aaron Asadi, CEO of Enterprise Nation, said:  

“2026 marks the arrival of the "income injector": a new breed of founder who views entrepreneurship as a strategic financial tool to protect their household from economic volatility.  

“This ‘income injector’ trend suggests that in 2026, entrepreneurship is the nation’s primary tool for economic resilience, with more people turning to side hustles to bridge the gap between their wages and their bills. 

“This is the first time we’ve seen the ‘why’ evolving to become more about financial survival than purely personal passion, which has always dominated.” 

With extra income being a major motivator for Millennials (36%) and Generation Z (39%) founders, funding their businesses on a budget was top of the list.  

Bridging the gap 

While a lack of essential skills, experience or a viable financial history and security may pose additional challenges for young people to start businesses, there is plenty of mentorship and funding available in the UK to bridge the gap. 

For instance, the government's Start Up Loans scheme hit the £100m in funding mark for young entrepreneurs aged 18 to 24. 

Among young entrepreneurs receiving the funding, the most popular industries included retail (£8.5m), hospitality (£5.8m) and arts and entertainment (£2.5m). 

Cory Hibbin, aged 22, took out a £14,500 loan to launch Techie Installation Services, which provides security solutions for residential clients, estates and corporate buildings.

He said: 

"I'm not the sort of person who can take on learning from behind a desk, so I left school at 16 to do an apprenticeship with a local IT consultancy company. While working there, I was working on the side in the evenings and at the weekends. 

"Having been there for four years, I felt like I had gained enough experience to start my own company, which is when Techie Installation Services began. I started with one large client, who quickly recommended me to other businesses and individuals, so I took on five new clients in our first six weeks. 

"The money from Start Up Loans was invaluable in the success of the business. I used it to buy tools for installations as well as supplies for the office. 

"While it might seem a big leap of faith to some people, you can't let the fear of failure stop you from trying in the first place. I urge anyone 18 or above to look into the finance options available to them if they need a hand getting off the ground." 

What more inspiration? Find out how these young entrepreneurs succeeded  

Funding and mentoring opportunities for young entrepreneurs 

1. Start Up Loans 

Launched in 2012, following an idea by former business and trade secretary Lord Young, Start Up Loans offers government-backed personal loans to those who want to start a business in the UK.  

You can borrow up to £25,000 at a fixed interest rate, which you can pay back over one to five years. In addition, you also get 12 months of free mentoring and exclusive discounts on business products. 

2. The King’s Trust Enterprise Programme 

This free programme helps 18- to 30-year-olds turn an idea into a reality. So far, it has helped over 91,000 young people start businesses through one-to-one support, creating business plans, interactive workshops and the opportunity to apply for a Test My Business Idea grant of up to £500. You can also apply for additional funding of up to £30,000 to cover start-up costs.  

3. The YOUNG EDGE competition (Scotland) 

For those aspiring entrepreneurs aged 18 to 30, YOUNG EDGE offers a chance to win an award of up to £15,000. Applications for Round 27 may be closed, but bookmark it for next year! 

4. Young Enterprise 

Young Enterprise provides financial and enterprise education to young people. The organisation works with businesses, schools, and higher education institutions to help those who want to start their own businesses.  

It also runs Enterprise Programmes to help young people develop the skills they need to start a business. Its Start-up initiative gives students aged 18 and over the opportunity to set up and run their own student company for one term or up to 12 months, develop employability skills and prepare for the world of work. 

5. The SWEF Enterprise Fund 

This fund aims to support 500 young entrepreneurs (aged 18-30) a year in growing their businesses. 

The fund offers entrepreneurs grants of up to £2,000 to launch their business, as well as support and advice to build essential skills. 

6. Seed Enterprise Investment Scheme (SEIS) 

This government-backed scheme has been designed to help small, early-stage UK companies raise capital funds by offering tax relief to individual investors who buy new shares in SEIS-registered companies. 

7. Innovate UK 

Innovate UK aims to drive economic growth and create jobs by offering funding and support in a variety of areas.  

Search for current opportunities through its Funding Finder feature.

8. Launch It 

Launch It aims to level the playing field for young people from underrepresented communities. With hubs in London, Kent, and Scotland, eligible entrepreneurs can rent affordable workspaces. 

It also runs a free two-year support programme that includes mentoring and funding opportunities for young entrepreneurs. 

9. UnLtd 

Supporting socially conscious businesses, UnLtd runs two programmes: Funding Futures (16 to 30 years old) and Millennium Awards Trust (16 years old or older).  

These programmes provide up to a year of support and awards of up to £8,000 for individuals starting a social enterprise. Those further along in their entrepreneurial journey can access up to £18,000 in funding to scale their financially sustainable social venture. 

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