It’s normally a grim topic, but unemployment appears to have a silver lining, according to new analysis on entrepreneurship. Research by The Beauty Academy revealed that a strong increase in youth unemployment in the UK has led to a surge in business creation. Not content with the lack of job opportunity on the horizon, British youth have taken their futures into their own hands and chosen to become entrepreneurs - particularly in the realm of beauty.
“Young people are no longer pinning their own hands and creating a business around a skill, a passion or a hobby. This is particularly true in the beauty industry where you can be your own boss, even if you have very little in start-up capital,” says The Beauty Academy head Coral Hadley.
UK’s youth reached peak unemployment last year, leaving 750,000 people without a job. This helped to spur a movement of vigorous entrepreneurship - with 55 per cent of young people between 16 to 25 endeavouring to set up a business of their own.
“The economic downturn prompted an outbreak of entrepreneur fever and this has grown,” explains Hadley. “Now more young people are seeing it as a sensible option so are training with a business plan in mind.”
The sheer number of young entrepreneurs proves Hadley’s point - in 2006, there were 145,104 companies founded by youth, compared to 247,049 in 2013.
As for the beauty business, it is flourishing - 60 per cent of small to medium businesses in beauty are sole traders, with six per cent of these founded by people under 25. This is twice the average rate of any other industry.
While in a much better position than the UK, Australia currently has a youth unemployment rate of 270,000. This is close to 15 per cent of the population - a number which isn’t showing signs of shifting anytime soon. As a result, just like Britain, youth entrepreneurship in Australia is expected to increase.
If you need proof, you need only take a look at the growing number of young beauty business owners. A stellar example is Bellabox. Created by twin sisters Sarah and Emily Hamilton three years ago, the company has just received a $6 million investment from Allure Media.
