As more Generation Z workers enter the workforce, critics often claim they lack basic employability skills. However, a new study by QR Code Generator suggests that Generation Z is launching businesses faster than Millennials did at the same age.
The research analysed data from the Office for National Statistics and Companies House between 2016 and 2025. By tracking company ownership through Persons with Significant Control, researchers compared generational snapshots at the same age milestones to measure the proportion of people starting businesses across the UK.
Generational comparison in business formation
Between the ages of 20 and 28, Gen Z launched 27.9% more companies per 1,000 adults than Millennials did at the equivalent ages, despite operating in an economy where generational economic growth has stalled.
The gap peaked at age 21, when Gen Z launched 67.6% more companies per 1,000 adults than Millennials. At age 22, Gen Z maintained a 56.4% advantage. The difference narrowed with age, with Gen Z launching 1.4% fewer companies than Millennials by age 28.
Data for older generations shows a declining trend in business creation across successive generations
- Millennials started companies 2.8% less often than Generation X did between the ages of 36 and 44.
- Generation X started 11.6% fewer companies than Baby Boomers did between the ages of 52 and 60.
Overall business formation rates across all age groups rose by 37.1% over the study period, increasing from 14.67 companies per 1,000 adults in 2016–20.12 per 1,000 in 2025. The highest rate was recorded in 2023, at 22.41 companies per 1,000 adults, representing a 52.8% increase from 2016.
Company formation by age: Gen Z vs Millennials
Normalised against 2016 formation rates; figures represent companies founded per 1,000 adults.
| Age | Gen Z years sampled | Gen Z company formations per 1,000 adults | Millennial years sampled | Millennial company formations per 1,000 adults | Gen Z/Millennial ratio |
|---|---|---|---|---|---|
| 20 | 2017–2025 (9) | 8.52 | 2016 (1) | 6.34 | 1.344 |
| 21 | 2018–2025 (8) | 10.84 | 2016–2017 (2) | 6.47 | 1.676 |
| 22 | 2019–2025 (7) | 13.13 | 2016–2018 (3) | 8.40 | 1.564 |
| 23 | 2020–2025 (6) | 15.49 | 2016–2019 (4) | 10.91 | 1.421 |
| 24 | 2021–2025 (5) | 17.53 | 2016–2020 (5) | 13.70 | 1.279 |
| 25 | 2022–2025 (4) | 18.89 | 2016–2021 (6) | 16.26 | 1.162 |
| 26 | 2023–2025 (3) | 19.62 | 2016–2022 (7) | 18.33 | 1.070 |
| 27 | 2024–2025 (2) | 20.39 | 2016–2023 (8) | 20.12 | 1.014 |
| 28 | 2025 (1) | 20.95 | 2016–2024 (9) | 21.25 | 0.986 |
| Average | 2017–2025 | 16.15 | 2016–2024 | 13.53 | 1.279* |
Regional breakdown of Gen Z entrepreneurship
The study identified the UK areas with the highest proportion of Gen Z business founders in 2025, excluding postcodes associated with mass company registrations.
16 of the top 20 local authorities were in London or its commuter belt. Redbridge in Outer London recorded the highest rate, with 30.84 Gen Z company formations per 1,000 adults. This was 209.6% higher than the adjusted national average of 9.96 formations per 1,000 adults.
Top local authorities for Gen Z company formation in 2025
| Rank (Gen Z) | Local Authority | Gen Z Company Formations (per 1,000 Adults, Adjusted) | % Difference from National Rate | All Company Formations (per 1,000 Adults, Adjusted) | Rank (All Companies) |
| 1 | Redbridge | 30.84 | +209.6% | 29.37 | 1 |
| 2 | Harrow | 25.05 | +151.5% | 26.50 | 2 |
| 3 | Slough | 24.56 | +146.6% | 23.96 | 3 |
| 4 | Barking and Dagenham | 23.12 | +132.1% | 22.18 | 7 |
| 5 | Luton | 22.20 | +122.9% | 22.35 | 6 |
| 6 | Hounslow | 21.88 | +119.6% | 20.68 | 12 |
| 7 | Hillingdon | 21.64 | +117.3% | 20.85 | 11 |
| 8 | Waltham Forest | 21.50 | +115.8% | 18.33 | 21 |
| 9 | Enfield | 20.73 | +108.1% | 20.40 | 13 |
| 10 | Newham | 20.64 | +107.2% | 23.38 | 5 |
| — | UK Overall | 9.96 | — | 11.18 | — |
Across the UK, the national rate stood at 9.96 Gen Z company formations per 1,000 adults, compared with an overall formation rate of 11.18 per 1,000 adults. Bolton was the highest-ranking area outside London’s commuter belt, placing 14th overall.
Industry focus and educational drivers
Marc Porcar, CEO of QR Code Generator, commented on the findings: “A lot has been said about Gen Z’s inability to work and how they might lack essential employability skills, but judging by these numbers, Gen Z may be the most entrepreneurial generation we have ever seen. They are opening more companies than Millennials ever did in the period studied, and while we don’t have direct comparisons to older generations yet, they are shaping up favourably with their current relative rates. It will be interesting to see how Gen Z perform when they reach their peak economic earning age at roughly 40. Millennials are entering that phase of life now, and currently make up the bulk of company incorporations because of this.”
“Gen Z’s company formation was highest in or around London, and this might suggest that it’s a case of earnings driving company formations. However, we found that the strongest driver behind Gen Z formations was qualifications. Gen Z overperformed in areas where there were fewer graduates and underperformed where there were more. Rather than going into higher education, Gen Z may be choosing to form companies instead, opting to go their own way rather than training for a job that may not be there when they graduate.”
“Perhaps unsurprisingly, Gen Z companies tend to be digital, with the top industry for Gen Z companies being retail sale via mail order houses or via internet. This sector accounted for roughly 1 in 6 Gen Z company formations in 2025, and Gen Z incorporations in this sector were more than double the average rate for Gen Z company incorporations across all sectors in 2025. At the other end of the scale, Gen Z were underrepresented in property management companies, public houses and bars, and holding companies not elsewhere classified. Property management and holding companies are generally reserved for people with lots of capital, which generally will be older people. However, it is fascinating to see pubs and bars so underrepresented, and this might reflect Gen Z’s tastes moving away from these establishments compared to older generations.”