Access to start-up cash has been voted as the main reason Gen Z and millennials are not going into business, a new poll from CPA Australia shows.
Lack of start-up funds and work-life balance stopping young people becoming small business owners: CPA Australia poll
CPA Australia Senior Manager Business and Investment Policy, Gavan Ord says “a recent CPA Australia poll of more than 1000 people on LinkedIn found that there is no silver bullet to the challenge of attracting more young Australians to run their own small business.
“The poll results show that there are several major reasons why many Gen Z and millennials aren’t taking the plunge and starting their own business. Chief among them is a lack of start-up cash. Thirty-eight per cent selected this as the main reason for the low number of young people becoming small business owners.
“The other major barriers were the impact that long hours running a small business can have on work-life balance and giving up the security of their current job for the uncertainty of running a small business.
“CPA Australia’s recent Asia-Pacific Small Business Survey showed that small businesses run by younger people are much more likely to be growing, creating jobs, innovating, using technology and exporting. With the survey also showing that Australia had the highest percentage of small business owners aged 50-plus in the region, the absence of young people from our small business ranks has long-term implications for Australia’s economic future. We need Australians of all ages running and owning small businesses. Diversity brings huge benefits to the economy.”
Why government and business must attract young people into small business
CPA Australia Senior Manager Business and Investment Policy, Gavan Ord says “there are clearly many factors discouraging young people from launching a business. CPA Australia is calling on the Federal Government to launch a public inquiry to better understand the root causes of this and put forward solutions.”
“CPA Australia’s Asia-Pacific Small Business Survey shows that Australia has been ranked among the worst in the Asia-Pacific for attracting the next generation of small business owners since our survey began in 2009. The government needs to ensure running a small business is an attractive option for young people who can bring their digital skills to the sector.
“We need to inspire and encourage young people to turn their business idea into a reality. We want the government and current business owners to explore how to attract young minds into small business. Those that do should find it rewarding, and the economy will benefit from a burst of entrepreneurial spirit and innovation.”
