Businesses set up by young people (aged 18-35) are profitable in less than two years, according to a VistaPrint study. Nearly half of them set up their own business in order to become their own boss.
Young entrepreneurs (aged 18-35) are able to generate income quickly, according to a study carried out by VistaPrint. The majority (81%) of businesses set up by young people are profitable, and 91% of them were profitable in less than 2 years. What's more, 82% of the young entrepreneurs surveyed started their businesses during or just after their studies. Their businesses had been in existence for an average of 3 years.
In terms of staff numbers, 20% work alone, 31% have two to five employees and 18% have between five and ten employees. In terms of recruitment, 74% of the young entrepreneurs surveyed plan to recruit an average of five people in 2023. Lastly, 64% of those planning to set up a business intend to do so within the next two years.
Among the young entrepreneurs surveyed, 43% had set up their business with a parent or life partner. In addition, 32% had set up their business with friends, a trend observed among the youngest entrepreneurs, 40% of whom said that they had first set up their business with friends. Similarly, 52% said they were supported by their close circle and 32% were helped financially by their family or friends.
Motivations and obstacles
The number one reason given by young entrepreneurs (45%), and those who are about to become entrepreneurs, for starting their own business is to be their own boss. The second most important reason (38%) is to be able to pursue their passion. Finally, 37% said it was purely for economic reasons, "to increase my income".
For almost half of the young people questioned (48%), the lack of funding to start up their business was a major obstacle. Fear of taking risks (40%) and not knowing where to start (38%) were also widely cited as difficulties.
More than a third of young people wishing to start their own business put a premium on well-being in the workplace. Other issues of concern include gender equality (23%), access to employment (20%), equal opportunities (18%) and ecology (17%). Finally, 54% of respondents also believe that France is a good place to start a business, despite the current socio-economic climate.
Methodology: the survey was conducted between 12 and 14 June 2023 with the OnePoll institute. Sample: 1,000 French adults aged between 18 and 35 who currently have their own business or intend to start one.