New stats published by the Accountancy Partnership show that there was a surge in the number of sole trader businesses launched last year, with young people driving it.
These figures show that people from the so-called Generation Z – which is the youngest demographic group – were primarily responsible for the rise. A total of 18,000 of the start-up companies that were launched during 2020 were by those who fall into that demographic. Furthermore, the number of people aged between 16 and 20 who have opted to set up their own sole trader companies since this time last year rose by 72%.
This was the only section of the populace among whom sole trader business numbers went up over the last 12 months, with the COVID-19 crisis being suggested as a major driver of this trend. Young people have been among the worst affected by job losses due to the pandemic, particularly in fields like hospitality, with many turning to their own start-ups as an alternative.
However, there are indications that people from Generation Z were already enthusiastic about owning their own businesses, with a rise of 206% in the number of people aged 16-20 launching start-ups in the past four years. Young men are particularly keen, accounting for 71% of these sole trader firms.
An accountant for sole traders from Doncaster, or anywhere else they happen to be based, would be able to offer these young people advice about everything from cash flow to what taxes they will be liable for.