East Anglia could be on the brink of a youth business boom, according to a report by The Prince’s Trust and Royal Bank of Scotland.

More than one in three of the region’s young people (36%) believe they will be self-employed in the future, with nearly one in six (16%) expecting to be their own boss within the next five years.

Although only one in 20 young people in the UK (5%) are currently self-employed, according to the Office for National Statistics (ONS) Labour Force Survey, more than a quarter (27%) of those surveyed by YouGov said they were “increasingly” thinking of setting up in business.

The continuing challenge of finding employment in the post-recession economic climate is a key factor.

According to the ONS, the number of self-employed young people has already risen by 71,000 since the start of the economic crisis in 2008, and the new survey found that nearly a quarter of unemployment young people (24%) would rather try to set up their own business rather than continue to seek a job in today’s competitve employment market.

However, many are being held by back worries over funding and support. More than half of the East’s young people (55%) say that not having enough money would prevent them from setting up in business, while more than one in four (29%) say that having a mentor would make them more likely to consider self-employment.

John O’Reilly, regional director of The Prince’s Trust in Central England, said: “This research reveals an increasingly entrepreneurial mood among young people in the East of England. Five years on from the start of the recession, youth unemployment remains high and many are seeing self-employment as a way to break the cycle of joblessness.

“Setting up in business can be tough, but at The Prince’s Trust we have a 30-year track record of helping disadvantaged young people succeed in work and self-employment, no matter what their background.

“It is critical we nurture young people’s passion for business and invest in the next generation.”

Chris Sullivan, chief executive of RBS’s corporate banking division, added: “It is of particular importance in these tough economic times to provide support for some of the most disadvantaged young people in the country.

“Through our ongoing partnership with The Prince’s Trust we’ve seen first-hand the life-changing results.”

Professor Michael Hay, pofessor of management practice in strategy and entrepreneurship at London Business School, said: “Traditionally Britain has lagged behind other countries in terms of the number of young entrepreneurs, but today’s report suggests that young people’s attitudes to self-employment are changing.

“It is important that the next generation of young entrepreneurs get the support they need from organisations like The Prince’s Trust. In the current climate, helping young people to beat unemployment and set up businesses that employ other people can only be a good thing for the UK economy.”