171,000 members of Generation Z - those currently aged between 18 and 25 - are already directors of businesses in the UK, shows new research from Cheltenham-based accountants Hazlewoods.

The analysis of 5.9 million company directors currently registered in the UK shows that Gen Z are now starting to become entrepreneurs. 

The businesses run by Gen Z directors in the UK include:

• 14,800 online retailers
• 12,400 bricks-and-mortar shops
• 4,100 property investment businesses
• 3,400 food stands and mobile food trucks
• 1,300 restaurants
• 1,100 recruitment agencies
• 900 estate agencies
• 700 pubs and bars

Ryan Hancock, associate partner at Hazlewoods, believes that the pandemic may have had the effect of turning more young people into entrepreneurs.

With many young people working in industries that were heavily affected by lockdowns, redundancies and furlough, some who were out of work over the last two years chose to start their own businesses.

The ease with which people can now open retail businesses using social media platforms meant that numerous Gen Z members turned to 'side hustles' in online sales of goods like clothing over recent years.

Some went a step further and opened bricks-and-mortar stores as the growing amount of empty retail space in the UK saw rents tumble in some areas.

Mr Hancock said: "Just as the credit crunch in 2007/8 turned a lot of Millennials into entrepreneurs, the COVID-19 crash may well end up doing the same for Gen Z."

"The barriers to entry in a sector like online retail are lower than they have ever been. Setting up a store to sell through a platform like Instagram is now extremely easy. Building a business purely through its social media presence is now a viable model for some."

"The availability of commercial space on high streets at low or even zero rents means there are opportunities for young entrepreneurs to be successful in sectors like retail and hospitality."

While the number of Gen Z directors is growing quickly, findings show they so far make up only three per cent of company directors in the UK overall.

This places this youngest group a long way behind leaders Generation X - currently aged between 42 and 57 - who make up 41 per cent of all directors in the UK.

This group is now likely to be approaching its peak in terms of running UK businesses, with the oldest members of the generation only now beginning to consider early retirement.

Baby Boomers - now aged between 58 and 76 - now only make up 25 per cent of all company directors as they get closer to retirement. Millennials (now aged 26 to 41) have overtaken them as a percentage of the UK's company directors in recent years, making up 29 per cent of the total director population.

Mr Hancock added: "Generation X is the generation that dominates the boards of British businesses. Baby Boomers have retired in very large numbers and a substantial generational shift has taken place over the last decade."