A new poll shows half of Gen Z adults have launched their own business – more than any other generation, with flexibility cited as the biggest motivation.
Half of Gen Zers have launched their own business, ranging from side hustles to fully established companies – the highest proportion of any generation.
A survey of 2,000 adults revealed that amongst 18 to 29-year-olds, the primary motivation for striking out alone was the freedom that comes with being their own boss. A further 18% said they were driven by chasing a dream, while 12% wanted to use their venture as a chance to help the environment.
By contrast, just 29% of Boomers and 26% of Generation X have chosen to go it alone. While flexibility is a key driving force for young entrepreneurs, 25% of Boomers admitted they are too afraid to step outside their comfort zone.
The research was commissioned by AXA UK as part of its annual AXA Startup Angel competition, which gives two budding business owners the opportunity to win £25,000 to help get their business off the ground, plus mentoring from successful startup owners.
To back the campaign, the insurer took a kitchen table to the bustling streets of London with two of the mentors – Izzy Obeng and Raphael Sofoluke – to quiz city workers about their self-employment ambitions and demonstrate that brilliant ideas often begin at home.
Mike Crane, managing director at AXA Insurance UK – Commercial, said: “Running your own business can be tough so it’s great to see so many young people are willing to take the leap.
“Giving up a stable income for the unknown is perhaps more challenging when you’re further along your career journey but there’s no age limit to coming up with a winning idea.
“To highlight this, we took a kitchen table onto the streets of London to demonstrate that successful businesses can begin absolutely anywhere.”
The research also revealed 17% of business entrepreneurs opted to run their concept past AI before consulting a friend. However, 35% would contemplate running a venture with a friend or family member.
Siblings were the most probable business partner for 51%, while 37% said they would explore the proposition with a parent or guardian.
More than a third (37%) said the most attractive aspect of launching with a relative was to pool skills and strengths. For 31% they appreciate the prospect of creating something meaningful together – while 23% said it’s sensible to share expenses.
The study, conducted through OnePoll.com, discovered the typical amount invested by owners in their business’s first year was £14,877 – Millennials had the largest expenditure with £17,210.
Mike Crane added: “Starting a business with someone is a great way to spread the load and bring in additional expertise and experience. Having a partner to share the highs and lows helps relieve the pressure and provides a sounding board for every decision.
“The AXA Startup Angel competition offers a shoulder to lean on by providing the financial backing, business insurance and expert advice entrepreneurs need to turn a great idea into a successful business.”
