An increasing number of younger employees are pivoting towards entrepreneurship as they feel undervalued in their current roles. The Global Financial Wellbeing Report by nudge reveals key insights into this trend.
- 54% of global employees aspire to entrepreneurship, with a strong trend in the UK workforce, especially among the younger generation.
- In the UK, 62% of men and 42% of women aged 25-34 aim to start their own businesses, citing feeling replaceable as a major factor.
- In the US, the entrepreneurial spirit is even stronger among men, with 82% expressing the ambition to establish their own enterprises.
- Different cultural contexts, like Japan and China, show varying entrepreneurial ambitions affected by local traditions and social norms.
The Global Financial Wellbeing Report highlights a significant upward trend in entrepreneurial aspirations among younger workers globally. More than half (54%) of employees worldwide now share the ambition of becoming their own bosses. This shift is particularly noticeable in the United Kingdom, where many young employees feel they are seen as interchangeable by their employers. For this demographic, entrepreneurship presents an opportunity to break free from feeling undervalued.
Within the UK, nudge’s survey indicates that 62% of men and 42% of women aged 25-34 have a financial goal of launching their own business. This is largely driven by a sense of being easily replaceable in their current job roles. The data reflects that 68% of men and 69% of women feel their employers view them as easily replaceable, with many attending work primarily for the paycheque.
The United States mirrors this sentiment, albeit more intensely. A notable 82% of men and 73% of women in the 25-34 age bracket have expressed intentions to start their own businesses. This burgeoning desire to embark on entrepreneurial ventures underscores a broader feeling of job dissatisfaction and a quest for personal achievement.
Globally, trends in entrepreneurial ambitions vary greatly. For instance, in Japan, the prevalence of lifelong employment results in lower entrepreneurial aspirations, with only 13% of women and 21% of men expressing interest. Conversely, China demonstrates a stark contrast with 83% of women and 55% of men aiming for entrepreneurship. The United Arab Emirates leads with 91% showing interest in starting businesses, highlighting cultural differences in how entrepreneurship is perceived and pursued.
Tim Perkins, nudge’s CEO, notes that while the entrepreneurial path may offer greater autonomy and satisfaction, it often lacks traditional employment benefits such as healthcare. This is a critical consideration, especially for older employees. Employers are encouraged to realign their support systems to enhance employee satisfaction and retention by improving awareness of available benefits and their application in supporting entrepreneurial efforts.
The increasing entrepreneurial ambitions among young employees emphasize a global shift towards self-employment as a means to counter dissatisfaction in traditional roles.
