Birmingham is a hotspot for young entrepreneurs

Birmingham has more young company founders than almost anywhere else in the country, according to new research which found that nearly one in eight directors of new Birmingham businesses is under 25.

The study, by the virtual office provider Virtual HQ, looked at the ages of directors appointed to newly formed companies between August 2025 and July 2026.

The figures

Of the 14,379 directors appointed to new Birmingham companies during the period, 12.9 per cent were under 25. That compares with a national average of 8.7 per cent.

The figure puts Birmingham fourth in the UK and first among the 30 local authority areas in the wider region.

Why Birmingham?

Birmingham is one of the youngest cities in Europe, with a large share of its population aged under 25. It has five universities, which produce thousands of graduates each year, and a growing range of support for start-ups, including incubators, co-working spaces and business advice.

Lower costs than London, from office rents to living expenses, also make it easier for young people to take the risk of starting a business.

Success stories

This week, two University of Birmingham graduates, Ben Ward and Jonathan Graham, sold their AI study platform StudyStash to Kortext, just 13 months after launching it.

Many young founders in Birmingham start businesses in areas such as technology, creative industries, food and drink, fashion and beauty, and online retail. Social media has made it easier to reach customers without the cost of a shop.

A note of caution

Not all newly registered companies go on to trade successfully, and many small businesses close within their first few years. Some people register companies for reasons other than starting a business, such as working as contractors.

Experts say young entrepreneurs often need help with the basics, from bookkeeping and tax to finding customers and managing cash flow.

Where to get help

Young people thinking about starting a business in Birmingham can get free advice and support from a number of organisations. The Prince's Trust, now known as The King's Trust, offers its Enterprise programme for 18 to 30-year-olds. The Government-backed Start Up Loans scheme provides loans and mentoring for new businesses, and the region's Growth Hub offers free advice to businesses of all sizes.

Universities in the city also run enterprise programmes for students and recent graduates, and libraries, including the Library of Birmingham, offer free access to business information and databases.

Youth unemployment

The figures are a reminder of the energy and ambition of young people in the city, at a time when Birmingham also has some of the highest youth unemployment in the country. The Chancellor, John Healey, announced a new national apprenticeship service at Labour's conference last week to help young people into work.

The bigger picture

Business groups say encouraging more young people to start companies could help to create jobs and bring new ideas into the city's economy, but that founders need access to finance and mentoring to grow their businesses beyond the first few years.

A regional growth plan led by the Mayor, Richard Parker, says it has supported 10,000 local businesses and helped create 3,000 jobs in its first year.

Setting up a company

Registering a limited company with Companies House is quick and cheap, which is one reason the number of new companies is so high. Founders then have legal duties as directors, including keeping accounts and filing returns on time, so advisers recommend getting basic advice before starting.