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Sir Richard Branson<\/p>\n
Nathan Congleton\/NBC via Getty Images<\/p>\n
With more than one million young people not in education, employment or training (NEET), the U.K. faces a long\u2011term economic challenge that cannot be solved by job creation alone. An increasingly important question is whether entrepreneurship could provide another route back into economic participation for NEET young people. And if so, are we equipping them to recognize self\u2011employment as a viable option?<\/p>\n
The latest ONS figures<\/a> showed 1.012 million 16-24\u2011year\u2011olds were NEET in January to March 2026, representing 13.5% of young people and an increase of 89,000 year\u2011on\u2011year. Crucially, 61% were economically inactive rather than unemployed. They are not simply waiting for jobs; many are disconnected from the labor market entirely. That makes the challenge deeper, and the potential solutions broader.<\/p>\n A Different Kind of Pathway<\/p>\n For decades, policy has focused largely on helping young people find employment. But some business leaders insist the conversation has overlooked another possibility altogether. Virgin Group founder Sir Richard Branson has long argued that the U.K.\u2019s systems for education and employment are too narrow for the diversity of talent young people possess. For him, entrepreneurship is not a consolation prize for those who don\u2019t thrive academically; it is a legitimate, high\u2011potential route to success.<\/p>\n He says: \u201cThere\u2019ll be lots of young people out there who didn\u2019t get good grades at school but have a creative mind and big ideas about how they might be able to make an impact in the world. We need to do more globally to encourage entrepreneurial spirit from a young age and give people the confidence and support to give it a go, as well as the resilience to bounce back and try again when things don\u2019t work out. It\u2019s no easy task, but with the right support, more people can turn that spark of an idea into something that makes a real difference.\u201d<\/p>\n Knowing How You Learn Best<\/p>\n His point is simple: entrepreneurship is not an alternative to education; it is an alternative to exclusion. Few stories illustrate this more clearly than that of Jordan Lansdown, founder of the activewear brand JLUXE<\/a>. In 2020, at just 21, she decided university wasn\u2019t the right path and launched her business from her spare bedroom with a \u00a34,000 loan from her grandma.<\/p>\n Having worked from the age of 13 and juggled two jobs alongside school, she was used to being in a work environment. \u201cI always knew that eventually I wanted my own business, and at the time, didn\u2019t feel like university was going to be the best route to get me there,\u201d says Lansdown. \u201cI felt I would learn more by being around people who were actually doing it.\u201d<\/p>\n Her approach reflects a growing trend among young founders: learning by doing, not waiting for permission. \u201cSometimes it\u2019s about knowing how you learn best, putting yourself in environments where you can gain experience and being open to where that might take you,\u201d she says.<\/p>\n The Startup Funding Challenge<\/p>\n But drive alone isn\u2019t enough. Access to capital remains one of the biggest barriers for young people with ideas but limited financial backing. In 2021, Lansdown secured a \u00a325,000 Virgin StartUp loan, which she describes as transformative. \u201cIt allowed me to move the business forward at a point where it was holding back the growth,\u201d she says.<\/p>\n JLUXE has since grown into a seven\u2011figure business, generating more than \u00a31 million in revenue over the past 12 months. But Lansdown insists the real story lies in the messy middle. \u201cYou don\u2019t need to know everything before you start,\u201d she says. \u201cThere were so many mistakes, failed products, things I didn\u2019t understand and moments where I had absolutely no idea what I was doing. You learn, you adapt, and you keep going.\u201d<\/p>\n Her message to young people who feel they are behind because they are not in education or employment is direct. \u201cThere are so many different ways to build a career now. University can be one of them, but it is absolutely not the only one,\u201d she says. \u201cYour route might look completely different to everybody else\u2019s, and that\u2019s ok even if the closest people around you disagree. Prove them wrong! You don\u2019t need to have your entire career mapped out at 16.\u201d<\/p>\n The Case for StartUp Support<\/p>\n Branson has advocated for better access to startup finance for young entrepreneurs for years. Through Virgin Media Pioneers, he helped build the case for government\u2011backed startup loans, lobbying MPs and then\u2011Prime Minister David Cameron. When the British Business Bank\u2019s<\/a> Start Up Loans program launched in 2012, Virgin quickly became one of its most successful delivery partners.<\/p>\n Since 2013, Virgin StartUp<\/a> has distributed \u00a3100 million in Start Up Loans to 7,000 U.K. founders. The mission is simple: make entrepreneurship accessible. But as managing director Andy Fishburn points out, while the ambition among young people is strong, the knowledge gap is wide.<\/p>\n He says: \u201cWe know the ambition is there, but while our Results Day research shows that 85% of parents would support their child in starting a business, only 57% of parents would feel confident advising their child on how to begin. Closing that awareness and confidence gap is an important part of our work.\u201d<\/p>\n The startup loan model goes beyond funding. Eligible founders receive support developing business plans and cash-flow forecasts, together with access to mentors, expert advisers and a community that helps them navigate the challenges of building a business. The results speak for themselves. Founders who received Virgin StartUp support early in their journey went on to build nationally and internationally recognized businesses such as Castore, DASH Water, OddBox and UpCircle Beauty.<\/p>\n A Strategic Economic Solution; Not Just a Social Good<\/p>\n With public finances under pressure and the labor market shifting rapidly, the case for youth entrepreneurship is becoming economic, not just moral. \u201cWe need to recognize that a young person\u2019s contribution should not be limited to filling an existing vacancy,\u201d Fishburn says. \u201cSome will thrive in employment, but others have bold ideas about how they can make a difference in the world and are interested in turning those ideas into a business.\u201d<\/p>\n Entrepreneurship, he argues, can bring new talent into the economy and create new sources of growth. The economic impact is measurable: for every \u00a31 loaned through the Virgin StartUp program, \u00a35.60 is generated for the UK economy.<\/p>\n Exposure Must Start Earlier<\/p>\n If entrepreneurship is to become a genuine route for NEET young people, finance alone won\u2019t be enough. Awareness and exposure must begin long before a young person leaves education, yet only 35% of young people<\/a> in England report any exposure to enterprise education at secondary school.<\/p>\n