Three quarters (75%) of Gen Zs (born after 1997) either have, or would consider, starting their own business, compared to 48% of Australians overall, according to fresh research from business management platform MYOB. The main motivations for Gen Z respondents to start a business are to be their own boss (41%) and to move away from the traditional 9-5 work life (37%).
The survey of 1,083 Australians aged 18-75, found a third (33%) of Gen Z would-be business owners are motivated to develop a passion project or hobby into something more, and 32% said they could make more money running a business than by earning a salary.
Paul Robson, CEO of MYOB, said the findings suggest an encouraging projection for a thriving local small business sector.
“The next generation are very motivated to start a business. Around half of Gen Z respondents already have a business idea (52%), are confident in their ability to succeed in their own business (55%) and feel confident they could find the money needed to start a business (49%).
“Overall, this generation is more positive and optimistic about starting a small business as a career pathway, compared to other generations polled. This is great news for the next wave of businesses, and the contribution they make to our economy.”
While 52% of Gen Z respondents say there are enough tools and assistance available to start a business if they have a great idea, and 43% believe it’s easier to start a business now than ever before, according to ASBFEO, only 8% of small business owners currently are under the age of 30, suggesting there are additional opportunities to be explored to make these budding businesses a reality.
Many are still cautious to take the plunge due to the economic environment. MYOB’s survey reveals 63% of Gen Z respondents say now is not a good time to start a business, due to inflated cost of living. Fifty-nine per cent agree that the current economic environment is not strong enough to start a business, and 52% say they’re waiting for more favourable economic conditions to start their own business.
“Australia has a thriving small business community, that contributes a third of our GDP, so it’s vital we support that next generation to build the future and ensure the systems and processes are in place to enable them to do so,” Paul said.
“The Federal Government’s Instant Asset Write Off and the Industry Growth Program are perfectly placed to support these budding businesses. It’s vital the government keeps initiatives like these on the agenda to support small businesses to confidently take the first step as well as helping new businesses survive their first few years.
“We know Gen Z is motivated and optimistic, and that they have the tools available to help them to start businesses. We need to ensure the economic environment is right so they can successfully take the plunge.”
ENDS
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Selina Ife
Media Manager
About MYOB
MYOB is a leading business management platform with a core purpose of helping more businesses in Australia and New Zealand start, survive and succeed. MYOB delivers end-to-end business, financial and accounting solutions direct to businesses employing between 0 and 1000 employees, alongside a network of accountants, bookkeepers and consultants. For more information visit myob.com or follow MYOB on LinkedIn.
About the research
The MYOB Snapshot survey was conducted using The Online Research Unit’s Consumer Panel. In total, 1083 consumers were surveyed aged 18-75. The survey was conducted online from August 21st – 27th, 2024.