Young business owners in Canada are far less likely to have gone to
university than their older counterparts, new GoDaddy research
suggests
- Recent research conducted by GoDaddy suggests young business
owners in Canada are far less
likely to have gone to university than their older counterparts
(47% for Gen Z, compared with 65% of Millennials, 58% of Gen X, and
56% of Baby Boomers)
- The GoDaddy Venture Forward research suggests there may have
been a "generational mindset shift" in the perceived value of
higher education, with almost half (48%) of graduate entrepreneurs
surveyed saying their university education wasn't valuable to
starting a business
- Across entrepreneurs of all ages, 13% of those surveyed left
education after high school – but this jumps to 25% among Gen
Zs
TORONTO,
ON, Oct. 3, 2024 /CNW/ -- Young business
owners in Canada are far less
likely to have gone to university than their older counterparts,
new research from GoDaddy suggests. Just under half (47%) of Gen Z
entrepreneurs surveyed indicated that they had a degree,
significantly lower than the 65% of Millennials, 58% of Gen X, and
56% of Baby Boomers who reported they had graduated from
university.
The findings come from Venture Forward, a multi-year
international research initiative by GoDaddy that conducted data
analysis on 770,000 Canadian online microbusinesses (which
typically employ ten people or fewer).
Young people turn to enterprise over higher education
The research found that on average across all ages included in
the research, only 13% of entrepreneurs left education after
graduating high school, and 63% are educated to degree level or
higher. However, amongst Gen Z entrepreneurs surveyed, the
percentage who left education after high school jumps to a quarter
(25%).
With income gains often unable to keep up with tuition fee hikes
in Canada, the significant cost of
higher education may potentially be putting off younger
generations, who are instead turning to entrepreneurship. And among
those surveyed who did graduate from university before starting a
venture, almost half (48%) say their university education has not
been valuable for life as a business owner.
Barriers to entrepreneurship entry
Almost three in ten (27%) Canadian entrepreneurs surveyed said
less than $500 was needed to start
their business, including 12% who said that no start-up capital was
needed at all. What is clear from the research is that
entrepreneurs from across Canada
are choosing to forego a university education to start their
entrepreneurial journey.
This trend is particularly pronounced in rural parts of
Canada, where a quarter (25%) of
the country's no-degree entrepreneurs surveyed live. In contrast,
just 13% of entrepreneurs surveyed who went to university live in
rural areas.
Young Lee, Head of GoDaddy
Canada, commented: "GoDaddy's research indicates
entrepreneurship is becoming an increasingly attractive alternative
to higher education. With higher education costs rising, we appear
to be seeing a generational mindset shift in the way young people
look at the value of university degrees.
"In many ways, it's never been easier to set up your own
business. From low start-up costs to innovative AI experiences like
GoDaddy Airo now available, entrepreneurs and microbusiness owners
have a wealth of knowledge and resources at their fingertips. Small
business owners in Canada can now
build websites and have them live quickly and easily as they get
started on their business journey."
Business confidence amongst non-graduate
entrepreneurs
GoDaddy's research also shows that entrepreneurs surveyed and
who didn't go to university are significantly more likely to employ
other people without a degree: 61%, compared to 43% among
entrepreneurs with a degree.
Entrepreneurs surveyed without a degree also reported being more
positive about overall expectations for their business over the
next six months (71%) compared to entrepreneurs surveyed without a
degree (67%).
Young Lee added: "With
GoDaddy research suggesting that higher education may not always be
a necessary ingredient for entrepreneurial success, entrepreneurs
who opt to forego attending university have the potential to be
every bit as successful in building thriving businesses."
Notes to the editors
About Venture Forward
Venture Forward is a
multi-year international research initiative, which analyses data
from 770,000 Canadian microbusinesses – conducted
by GoDaddy to quantify the impact of
microbusinesses on the Canadian economy and their local
communities.
About GoDaddy
GoDaddy helps millions of
entrepreneurs globally start, grow, and scale their businesses.
People come to GoDaddy to name their idea, build a
professional website, sell their products and services, and accept
payments online and in-person. GoDaddy's easy-to-use
tools help microbusiness owners manage everything in
one place and its expert guides are available to provide assistance
24/7. To learn more about the company, visit
www.GoDaddy.com.
SOURCE GoDaddy