How COVID has impacted UK businesses formed by millennials in 2020
mnAI has put together a small report on the number of new UK business incorporations by millennials during 2020 which includes data broken down by number of companies, directors, ages, gender and regional activity.
Number of new businesses formed by younger entrepreneurs
In 2020, 352,831 companies were founded by millennials with an average age of 34, down by two years from 36 in 2019.
The total number of businesses formed in 2020 was 693,937, which means millennials were responsible for 50.8% of the total, and a 30% increase compared to 2019 when they founded 269,346 companies. In 2019, most of the businesses formed by millennials were formed in October, whereas in 2020 most new business formations occurred in June/July ie during the lockdown period.
New businesses broken down by gender:
The majority (54%) of businesses formed by millennials during 2020 were male only founded (190,937) while female only founded companies totalled 18% (65,643). Businesses founded by an equal gender split made up 19% of the total (68,065). The total number of millennial female founders rose from 92,403 in 2019 to 112,000 in 2020 – a 21% increase.
The region with the highest number of companies newly founded by millennials in 2020 was London (21,276), followed by the North West (6,276) and the West Midlands (5,056).
The most popular industry for new businesses was online retail, followed by IT services.