The number of young entrepreneurs starting up their own business has increased by nearly a quarter (22%) in the past three years, according to research by information services company Experian.

However, 45% these businesses are wound up within two and a half years, although when a director aged over 26 is also on the board, this rate improves significantly.

The analysis also highlights that young directors are 57% more likely to start up a business in sectors defined as ‘vulnerable’ by Experian, such as construction, retail and hotel or catering, than those sectors defined as ‘resilient’.
 
Simon Streat, managing director of Experian’s UK SME business, says: “With young directors often lacking the experience, capital and contacts needed to survive those first few tricky years, our research shows that they shouldn’t underestimate the value in partnering with an older director.”