Confidence Gap Holds Back Gen Z Business Founders, Report Finds

A new report from NatWest and Mettle by NatWest says a confidence shortfall is blocking many young people from starting businesses. Out of the 1,000 aspiring business owners in the UK between 1 and 4 September 2025, 41% of Gen Z think starting young makes sense, yet 40% feel overwhelmed and unsure how to begin.

Emotional pressure comes through strongly with the research saying 31% of Gen Z are afraid of failing and 30% worry about fitting work around personal life. A separate 26% feel anxious about handling every task alone. These findings come from the Start Gap report published by NatWest and Mettle by NatWest.

Michelle Prance, chief executive of Mettle by NatWest, said ideas and ambition are not missing. She said: “Gen Z doesn’t lack ideas or ambition – what some young entrepreneurs are missing is confidence. Our job is to remove that uncertainty by offering the tools, guidance and encouragement young people need to believe in themselves and turn their ideas into viable long-term businesses.”

What Pressures Stop People Taking The First Step?

Money worries rank high across age groups, though the reasons are different. The report says 26% of Millennials hesitate to give up a stable salary, while 32% of Baby Boomers worry about starting out during uncertain economic conditions. For Gen Z, lifestyle pressure comes through more strongly, with 30% worried about juggling work and life.

The data shows doubts about skills also being an issue. Around 17% of aspiring founders lack confidence in selling or marketing, and 11% feel unsure about writing a business plan. These results come from the same NatWest and Mettle survey.

Beliefs picked up from social media and popular culture also shape attitudes. The report says 32% think a business needs a completely unique idea to succeed. At the same time, 36% say social media inspires them, although 21% feel pressure from success stories online.

Chaye Hall, 25, founder of hair and skincare brand Official True Beauty, described early isolation. She said: “At the beginning of running your business, you feel like you’re on your own. You are the finance team, the accountant, the content creator – you wear so many hats when you don’t actually have to. There are so many opportunities for support out there.”

How Can Support Close The Start Gap?

Step by step guidance appears to boost confidence more than anything else. The report says 14% of Gen Z see structured direction as the best trigger to start. Mentorship also ranks highly, with 15% saying advice from someone experienced would help them move ahead.

NatWest and Mettle by NatWest point to practical help already in place. Mettle offers a free business account, digital money tools and access to learning resources. Through FreeAgent, founders get AI powered accounting software that automates admin and sorts transactions.

Michelle Prance said the aim is steady reassurance… She said NatWest and Mettle have helped tens of thousands of businesses get started in 2025 by backing people through early decisions and everyday finance.

The NatWest Accelerator app also targets early stage founders. It gives digital and in person support and links users to a community of business owners. The Start Gap report says 15% gained confidence through mentorship, showing the value of shared experience.

Chaye Hall said learning to ask for help changed her outlook. She said: “Asking for help was my biggest fear, but over time you become used to it. I think being too comfortable in your own environment can hold you back, so you must learn the business and get used to being uncomfortable – and that’s okay.”