Covid19 creates boom in 'early entrepreneurs' aged under 25 in Liverpool

THE company that empowers everyday entrepreneurs, GoDaddy Inc. (NYSE - GDDY), has released new research which finds that the Covid19 Pandemic has caused a surge in young people starting their own businesses in the UK.

The survey of 2,502 aged 16 to 24 year olds in the UK carried out by Censuswide for GoDaddy, shows that 9% have started their own business since February 2020. In Liverpool, the proportion of young entrepreneurs is higher, with 11% having started their own business. This suggests that, based on the latest Office for National Statistics (ONS) population estimates for this age group, over 630,000 ventures were launched by:- 'early entrepreneurs' in the UK since the start of the Pandemic.

A further 11% young people surveyed in Liverpool say they have a concrete business idea and are in the process of setting up their own company, compared to 18% of those surveyed nationally, indicating that the number of youthful start ups is expected to increase further this year. These research findings suggest that the average age of a UK entrepreneur, which was 40 years old in 2019 according to Companies House data, is likely to go down in the 2020s as a part of the legacy of the Covid19 Pandemic.

Nationally, creative industries and retail are the most popular sectors for 16 to 24 year old entrepreneurs surveyed, despite the challenges faced by both industries in the last 10 months. Nearly 17% of the:- 'early entrepreneurs' launched a creative business (specialising in art, music or design), which based on the latest ONS population estimates, equates to around 108,000 new companies, closely followed by retail, 15% with an estimated 95,000 new businesses.

This surge of young start up entrepreneurs comes in response to the Pandemic, which has disrupted the job market and Forced many people to take professional opportunities into their own hands.

When asked what encouraged them to launch their own business, 75% of 16 to 24 year olds surveyed said there were not enough employment opportunities for them in the current economic climate. In fact, prior to pursing their own business ideas, almost 19% people in this age group had tried and failed to find work in their chosen field.

Ethan Maddison, 23, launched Branded Camera, a content creation agency providing short videos for recruitment companies wanting to advertise online and on social. Having launched in November 2020 he comments on why he started his own business, and the important role his website is already playing in his success:- "The last year has been pretty tough work wise. I graduated University with the hopes of becoming a sports journalist, but given how tough the job market is right now, I ended up taking a customer service role for a sportswear company. It wasn't my dream job, but it paid the bills. Sadly, as a result of the Pandemic I was made redundant in September 2020. I considered applying for similar roles again, but after my difficult experience applying for jobs earlier in the year I decided to take the plunge and start my own business. I've always been creative, and passionate about media, so that's where my idea came from. In all honestly, I hadn't really considered the importance of having an online presence when I 1st came up with the idea. Now I realise how important it really is! With everyone working from home and everyday life being so virtual, it's crucial that I have a website to act as an online shop window for potential clients; like an online scrapbook of my work for people to peruse. Since launching 2 months ago, I already have 4 regular clients, and I'm confident my client base will grow with time. I'm planning to continue working on the website and my online visibility, and I'm looking forward to seeing what 2021 brings."

92% of 16 to 24 year old entrepreneurs surveyed place great importance on having an online presence and consider having a website, social media channels or ecommerce capabilities to be important for their business. The average for UK business founders of all ages is 88% with 59% of entrepreneurs over the age of 55 agreeing an online presence is important.

The research also revealed that 16 to 24 year old entrepreneurs overwhelmingly favour ecommerce and derive 12% more revenue from online sales than the average business owner (42% vs 30%). Younger entrepreneurs were successful in seizing the opportunities of ecommerce and maximising their revenues through online sales during the Pandemic. Their online sales were reported as having increased 10%, from 32% before the Pandemic, to 42% since February 2020.

The vast majority (91%) of entrepreneurs between the ages of 16 and 24 polled by GoDaddy either already sell, or plan to sell their products and services online, and 76% already sell, or plan to sell through their business' website. By comparison, 17% of entrepreneurs over the age of 55 do the same.

Sakshi Anand, Senior Director, GoDaddy UK and Ireland said:- "Despite the challenges of 2020, our research shows that young entrepreneurs have managed to make the most out of a difficult situation and have demonstrated the ability to flourish in a challenging economic environment brought on by the global Pandemic. In addition to those young entrepreneurs who have already started a business over the last year, and with 91% surveyed as already selling online or planning to sell online, we're excited to see what 2021 will bring for our new generation of UK's entrepreneurs."

GoDaddy's research also reveals that older entrepreneurs tend to favour more traditional industry sectors. Among 750 business founders of all ages in the UK, the most popular sector is professional services with 14% uptake, followed by retail at:- 13%, construction and real-estate:- 11%, manufacturing:- 10% and technology surprisingly just:- 9%.

GoDaddy is committed to helping the nation's entrepreneurs name, create and grow their ventures, by supporting them to be found online, sell their products online, and engage with their customers in a variety of ways. Over the course of 2021, GoDaddy will be running initiatives designed to help 16 to 24 year olds start and grow their ideas online.

But, this new development of young entrepreneurs are also being warned by HMRC and Trading Standards to check they are following the laws when selling products and services.

Are you 1 of those who new entrepreneurs to set up a business? If yes, please do get in contact, so we can find out more about your business and let others know. Our Newsroom Email is:- News24@SouthportReporter.com.

THE Liverpool 1 Foundation has issued a final call for applications to its 2021 Children and Young People's Mental Health and Wellbeing funding programme. The process will offer up to ₤30,000 per application for successful charities in the Liverpool City Region.

Managed by The Community Foundations for Lancashire and Merseyside (CFLM), The Liverpool 1 Foundation is seeking to help decrease the number of people under 25 years of age suffering from poor mental health. The Children and Young People's Mental Health and Wellbeing programme will provide up to ₤15,000 in funding per year for 2 years for all successful grant applicants.

The programme rolls out at a crucial time for the community, with a new study by Prince's Trust revealing that, of people under the age of 25 in the UK, ½ say their mental health has worsened since the start of the Pandemic, and 1 in 4 feels:- 'unable to cope with life.'

Applications for funding are invited from organisations within the community and voluntary sector which provide mental health intervention, prevention and support projects. Examples of eligible initiatives include:-

►  Projects that look to raise awareness of mental health triggers for young people (for example:- bullying, online triggers, peer pressure)

►  Initiatives developing young people's resilience with practical methods and techniques, to equip skills for mental wellbeing.

►  Family support, such as projects aimed at parents to prevent the development or escalation of mental health problems in children and young people.

►  Peer mentoring projects with a focus on youth mental health and wellbeing.

►  Projects that look to achieve a positive mind set change around mental health.

►  Applications from community and voluntary sector organisation for projects taking place within Schools, as long as additional to national curriculum.

►  The closing date for applications is 4pm, on 29 January 2021.

Rae Brooke, Chief Executive at CFLM commented:- "The significant funding from the Children and Young People's Mental Health and Wellbeing programme is designed to provide substantial, longer term assistance for the delivery of effective resources. Our objective is to support more of Merseyside's incredible grassroots organisations to continue to build a stronger community together."

Donna Howitt, Marketing and Communications Director at Liverpool ONE, added:- "We are pleased The Foundation is able to offer funding at such a vital time for young people, and we look forward to seeing the impact of this programme over the next 2 years."

Applications will be reviewed by The Liverpool 1 Foundation panel, which includes Colette Taylor from Merseyside Youth Association; Tom Mansell from The Westminster Foundation; and Lee Pennington, Charity Director at The Open Door Centre.

The Liverpool 1 Foundation's recent funding recipients include Womens Enterprising Breakthrough, Liverpool Lighthouse, Home Start Knowsley, Yellow House, Shaftesbury Youth Club and Conquer Life CIC. Since 2019, the Foundation has donated over ₤2.3m to community projects, and directly benefitted approximately 375,000 people. To find out more, visit:- Liverpool-One.Com.