Business leaders of tomorrow

A Companies House FOI looking at the number of companies incorporated from 2018/19 to 2023/24 with a Gen Z director appointed on the day of incorporation in the UK has shown a rise of a staggering 695%. While some of this growth reflects more Gen Z individuals entering the workforce, it's a clear signal that this generation is choosing to carveout their own career path and are engaging with entrepreneurship earlier, and at scale.

But what does it take to build a business from the ground up? Not only build, but thrive too? From kitchen table start-ups to high-growth SMEs, business leaders across the UK are shaping the economy and inspiring a new generation of entrepreneurs. But success rarely comes without setbacks, steep learning curves, or a few unwanted surprises along the way.

In this study, Markel Direct presents a data-led approach to exploring the rise of new business leaders across the UK. Combining insights from Companies House records, ONS data, University data and surveying both established business founders and Gen Z with entrepreneurial aspirations, we map the motivations, challenges, opportunities and trends that may shape the new generation of UK business owners in the near future.

Fundamental to this report is the belief that successful businesses don't just start with a great idea. Businesses are built with the right support, access to knowledge, and the confidence to navigate risk. For new or future founders, particularly in an uncertain economy, these factors can make the difference between short-term success and long-term sustainability.

Executive summary

Entrepreneurship is a key driver of innovation, economic growth, and job creation across the UK. It empowers individuals to build their own opportunities, fuel local economies, and respond and adapt to our ever-evolving societal needs. As new generations enter the workforce, particularly Gen Z, the shape and pace of entrepreneurship is changing. It's driven by a desire for autonomy, flexibility, and ultimately, purpose.

This report offers a comprehensive look at the emerging generation of business leaders, exploring what motivates them, where they're starting up, the challenges they anticipate, and the skills they value the most. Through thorough data collection and analysis, we highlight how the landscape of UK entrepreneurs is shifting, along with the growing need to support new founders on their journey.

This extensive report explores the qualities, challenges, and ambitions of tomorrow's business leaders. We uncovered that experienced SME business leaders feel that while entrepreneurship brings freedom and fulfilment, it also comes with significant challenges, particularly around financial pressures, work-life balance, and navigating uncertainty. Many cited cash flow issues, long hours, and lack of support as key stressors.

Interestingly, these concerns mirror the predicted challenges voiced by Gen Z entrepreneurs, suggesting that while motivations may evolve, the realities of running a business remain consistent across generations. The insights from experienced leaders offer valuable lessons for the next wave of founders.

We also examined where future founders are emerging, highlighting hotspots across England and the rest of the UK. Regions such as Suffolk and Wales have seen Gen Z-led incorporations rise by over 1,300% in just five years.