Generation Z runs nearly 400,000 UK businesses

A Hiscox analysis of Companies House data reveals a shift in where – and how – Britain's youngest entrepreneurs are building businesses. 

• Almost 400,000 Generation Z company directors are currently active in the UK, growing 78% on average annually 

• Belfast, Bradford, and Bolton top the leaderboard as Gen Z business growth hubs 

• Online retail and real estate are among Gen Z's top trades 

Business insurer Hiscox has analysed Companies House data to reveal a sharp increase in companies run by Generation Z (born 1997–2012), with 393,531 active directors under the age of 28 operating UK-registered businesses in 2025. 

Please see the report here: https://www.hiscox.co.uk/business-blog/next-gen-z-entrepreneurs-future-business-getting-younger 

 
The number of Gen Z-run businesses has grown by an average of 78% annually, while shareholder appointments have soared even faster, at 128% annually, showing the generation's growing business acumen. 

Gen Z entrepreneurial growth exists outside of London 

 
Though London remains the biggest hub for Gen Z entrepreneurs (home to 21% of Gen Z-run companies), growth lies elsewhere. Belfast saw Gen Z director appointments grow by 180% over the last five years, followed by Bradford (148%) and Bolton (100%). 

Gen Z use property investment as an alternative to home ownership     

'Other letting and operating of own or leased real estate' ranked as the second-most popular trade, accounting for 4.7% of all Gen Z businesses. This typically refers to companies that buy and hold property and rent it out. Despite many young peoples' struggles getting on the property ladder, Robin Edwards, a property buying agent at Curetons comments: "High property prices continue to make personal homeownership difficult, so many Gen Z investors see property investment as a different way to enter the market.  

"Often these Gen Z investors rent and work in cities like London where it's expensive to buy, so instead they invest in other regions of the UK with much cheaper property prices that offer better yields and more potential for capital growth." 

Gen Z online retail businesses are booming  

'Retail sale via mail order' is the top trade Gen Z are exploring accounting for 5.6% of all Gen Z-run businesses. Drop shipping, a retail strategy where an online store sells products without owning the inventory, has trended among younger generations thanks to TikTok. Instead, the retailer forwards the order on to their supplier who ships the product directly to the customer. The term 'drop shipping' has 1.6M TikTok posts after various accounts tout it as an accessible business venture for young entrepreneurs.  

Compared to the broader UK business landscape, 'other letting and operating of own or leased real estate' ranked as the top trade and 'retail sale via mail' order placed seventh. 

Nick Thornhill, Direct and Partnerships Director at Hiscox says:  

"We've long believed that entrepreneurial spirit knows no age. The meteoric rise of Gen Z entrepreneurs shows that the next generation is taking an active involvement in business - they're turning bold ideas into business ventures and taking on influential roles. 

"After growing up more or less digitally native, it's apt that Gen Z directors are most prevalent in an online industry. The internet has revolutionised retail, and with the emergence of e-commerce features on social media, there's never been more digital avenues for retailers to sell products and services.