- Research by AXA UK found half of 18 to 29-year-olds have started their own business or side hustle
- In contrast, older age groups are less likely to branch out on their own, not wanting to step out of their comfort zones
- AI is playing a role in startups, with 57% of entrepreneurs checking if they’ve come up with a unique idea and 43% treating it as a trusted confidante
Half of Gen Zs have started their own business ranging from side hustles to fully-fledged companies - the most of any generation.
A poll of 2,000 adults revealed the flexibility that comes with being their own boss was the biggest reason for going it alone among 18 to 29-year-olds.
While 18% were driven by pursuing a dream, 12% wanted to use their venture as an opportunity to help the planet.
In contrast to Gen Z, just 29% of Boomers and 26% of Generation X have decided to branch out on their own.
And while flexibility is a key driver for young entrepreneurs, 25 % of Boomers are too scared to step out of 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 support the campaign, the insurer took a kitchen table to the busy streets of London with two of the mentors - Izzy Obeng and Raphael Sofoluke - to ask city workers about their self-employed ambitions and to show that great ideas often start at home.
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 study also found 17% of business entrepreneurs chose to run their idea past AI before consulting a friend.
The main reason was to check it was an original concept (57%) and to get clarity on next steps (55%).
But 43% said they turned to AI first because they believed they could rely on it to keep a secret.
It also emerged 35% would consider running a business with a friend or family member, with siblings being the most likely business partner for 51%, while 37% said they would explore the idea with parents or guardians.
More than a third (37%) said the most appealing part of starting up with a relative was to combine skills and strengths.
And 31% said they like the idea of building something meaningful together – while 23% said it’s best to share costs.
The study, carried out through OnePoll.com, found the average amount spent by owners in the first year of their business was £14,877 – Millennials had the biggest outlay with £17,210.
And 63% were confident their venture would survive the next five years.
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.