Over 1 in 10 entrepreneurs have turned to their parents and family to help them fund a business, according to research.
And under-35 millennial entrepreneurs are twice as likely as older generations to ask for help from family to invest in their businesses as traditional funding becomes harder to come by, according to payments provider Worldpay.
Worldpay says that people are increasingly shunning university in favour of starting a business, with over a third of respondents saying that starting a business was a better investment than going to university — rising to 43pc for millennial entrepreneurs.
In the UK, the number of self-employed young people has doubled since 2001, with 30pc of millennials aspiring to be their own boss.
The Bank of Mum and Dad has been integral in funding the property sector, with one in four housing transactions in the UK reliant on funding from family. And now that trend is spreading to the UK’s 5.7 million small businesses.
Steve Newton, executive vice president of UK and Europe, Worldpay, said: “With the UK start-up scene defying economic uncertainty and growing over 5pc this year, it’s clear that the UK has a strong entrepreneurial spirit. The challenge is to ensure that we’re creating the best environment and enabling access to the right support and tools for small businesses to succeed in the long term.
“While it’s great if a business can be a family affair, not everyone will be in a position where this is possible. It’s imperative that aspiring entrepreneurs can access start up and working capital regardless of their background. Technology can be a great enabler for helping to foster this diversity by opening up new routes to finance that haven’t traditionally been available. Our message to entrepreneurs is that it doesn’t matter who you are or where you come from, if you have a drive to grow a small business nothing should stop you.”
More businesses started by enterprising young people over past year