The Baby Millionaires' Club
There are 900 Britons between 17 and 34 who are worth a million, and there are plenty more where they came from
Sunday, 3 September 2006
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While their twentysomething contemporaries are paying off student debts or struggling for a small foothold on the property ladder, they are ploughing their massive personal fortunes into hedge funds or building up fleets of expensive sports cars. For record numbers of young Britons, money is no problem - they are already millionaires.
A new report, to be published tomorrow, has identified for the first time exactly how many "baby millionaires" there are in the UK - and precisely where. The research identifies around 900 millionaires aged between 17 and 34 living in Britain, a figure that is predicted to grow at a rate of around 100 a year.
South-west London tops the list of postcode "hotspots" for young entrepreneurs, closely followed by Belfast, Gloucester and Edinburgh, according to the study compiled by marketing and consumer intelligence company EuroDirect
The data, part of EuroDirect's Millionaire Neighbour Report, also reveals that 40 per cent of what it calls "baby millionaires" are female, and that 36 per cent of the total are unmarried.
"Babies" favour different locations from more established millionaires, said Leanne Douglas, group project manager at the research firm. Belfast, for instance, does not feature at all in the overall top 10, but is a close second in the baby millionaire stakes.
"While certain areas of the UK appeal to the affluent of all ages, such as south-west London, Guildford and Edinburgh, the inclusion of places like Belfast, Gloucester and York in the baby millionaires ranking suggests these towns have something of particular interest to offer young wealthy individuals," said Ms Douglas.
Other towns which made it into the overall top 10, but were unpopular with baby millionaires, include Birmingham, Kingston-upon-Thames and Glasgow.
Coutts, a market leader in private wealth management, has also reported a dramatic rise in the number of young millionaires. A spokeswoman estimated this rise to be approximately 10 per cent a year for the past two years: "Our client base is getting a lot younger," said Claire Symonds.
"The average age of a millionaire used to be mid-fifties, but now it is mid-forties, which obviously shows that people are making their money earlier: they are tending to take the plunge and start their own businesses at a younger age."
Earlier this year, BT set up its national Essence of the Entrepreneur awards to celebrate the achievements of this growing demographic.
Mick Hegarty, a spokesman for the company, said: "Even five years ago, things were not the same. One factor that has made a big difference is broadband internet. In the past, if you had a good idea, it would be difficult to do anything about it quickly. You would have to hire a shop or set up a market stall. Now we're part of a much freer and more flexible marketplace. Within hours, anyone can buy a website and begin selling to the world.
"Technology has taken small business on to a new level. Napoleon said England was a nation of shopkeepers; now it's a nation of innovators and online web-based businesses - and they're obviously doing very well."
THE RICH KIDS
Louisa Fletcher 32
From: Guildford
Worth: £7m
Companies: Online property companies propertyprice advice.co.uk and fish4homes.co.uk
She says: "You get to a point where you're a bit fed up with providing the picks and shovels for everybody else in the gold rush. I launched my first site last year. On a normal day, I'll switch my laptop on at 6.30am and turn it off at 9.30pm, including weekends. A lot of blood, sweat and tears has gone into this, but you have to be on the ball when you start your own company, because the buck stops with you."
William Berry 29
From: West London
Worth: £5m
Companies: Online companies accommodationforstudents.com, thomascharles.com and conferences-uk.org.uk
He says: "I think it's easier to become a millionaire now, but it does depend on the sector. The great thing about the internet is that it creates a fantastic level playing field. If you're a small and dynamic business, it allows you to be more nimble than your bigger, lumbering competitors. The secret is having an ability to integrate business strategy and opportunity with technology."
Jamie Murray Wells 23
From: Gloucester
Worth: £5m
Company: Online company glassesdirect.co.uk
He says: "While I was a student, I bought a simple pair of glasses for £150, a ridiculous amount to pay. When I looked at the whole industry, it seemed very dubious."
Gordon Gibb 30
From: York
Worth: £75m
Companies: Flamingo Land, Bradford City FC
He says: "I was 19 when I took over Flamingo Land. In the past 10 years the turnover has more than doubled. I suppose what did it was having a young person's new ideas on top of a solid foundation."
Sam Manning 31
From: South-west London
Worth: £1.5m
Company: Property trader
She says: "I started buying properties at the end of the boom in 2004. After I bought my first property I realised it would make me more money than my entire year's salary - so I bought another."
Jonathan Knight 25
From: Belfast
Worth: £1m
Company: Redraven (extreme sports equipment)
He says: "A number of young people in Belfast are successful because of its great network of investors. People have a brilliant attitude towards new ventures."
Charlie Osmond 27
From: Oxford
Worth: £2.5m
Company: Fresh Minds, research and recruitment
He says: "My business partner and I established Fresh Minds in 2000 after we graduated from Oxford University. In 2005, the company turnover was £5m."
Krystyna Kuszyk-Yeomans 29
From: Tunbridge Wells
Worth: £1m
Company: Christina K - bridalwear
She says: "I've been lucky with my business; this year my turnover trebled. It's daunting, but if you have enough motivation and work hard, success is possible."
Nick Fullerton 25
From: North-west London
Worth: £2.5m
Company: FCExchange (currency exchange)
He says: "It was difficult to get banks to take us seriously because of our age. But age is irrelevant when you have a good idea and proper business plan."
Andrea Holmes 29
From: Bath
Worth: £2.5m
Company: Cyan (men's fashion)
She says: "I won some money on the Lottery when I was 25, and used it to set up my business. I wanted to use the winnings to make some money, so I could say, 'I'm the one who made it work'."
