"7 out of 10 Unemployed MZ Generation Prefer 'Entrepreneurship'"

KCCI 'Youth Startup Perception Survey' Results
'Accommodation and Food Services' Most Desired Startup Sector

[Asia Economy Reporter Kiho Sung] According to the 'Survey on Startup Perceptions of Unemployed MZ Generation Youth,' 72.8% of respondents are either preparing to start a business or have the intention to do so, mainly hoping to start ventures in livelihood-type industries such as 'lodging and food services' and 'retail,' aiming to 'work more freely.'

The Korea Employers Federation (KEF) announced the results of the 'Survey on Startup Perceptions of Unemployed MZ Generation Youth' conducted on 500 unemployed MZ generation youths (based on respondents) on the 13th.

First, 72.8% of respondents answered that they are 'currently preparing to start a business or intend to start one in the future.' Among these aspiring young entrepreneurs, when asked about their desired startup sectors, 'lodging and food services' was the most common response at 31.0%, followed by 'retail' (17.9%), 'IT and telecommunications' (14.6%), 'arts and cultural services' (9.9%), and 'professional scientific and technical services' (7.7%).

Regarding motivations for starting a business, 50.5% of aspiring young entrepreneurs answered 'to work more freely,' followed by 'to earn more economic income' (46.2%) and 'to work longer without retirement' (36.3%) (multiple responses allowed).

As for startup capital, 35.8% of respondents answered 'between 50 million and less than 100 million KRW,' with other responses being 'between 100 million and less than 200 million KRW' (30.4%), '200 million KRW or more' (17.6%), and 'less than 50 million KRW' (16.2%).

Regarding the preparation period for starting a business, 66.4% of respondents answered 'within 1 to 3 years,' followed by 'within 3 to 5 years' (13.2%) and 'less than 1 year' (12.8%).

When asked about tasks to revitalize youth startups, 'expansion of startup capital support' was the most common response at 51.6%, followed by 'expansion of startup infrastructure' (42.4%), 'establishment of a systematic startup education system' (30.2%), and 'simplification of startup procedures and easing of entry regulations' (22.2%) (multiple responses allowed).

Young-yeong Tae, head of the Employment Policy Team at KEF, stated, "Through this survey, we were able to confirm the high interest and enthusiasm of unemployed MZ generation youth toward startups, especially noting that many young people want to start businesses to work more freely."

He continued, "However, many of the desired startup sectors are livelihood-type industries. It is not desirable that young people flock to livelihood startups, which are pointed out as 'red oceans,' rather than technology-type startups such as IT, telecommunications, and technical services that challenge new business opportunities," emphasizing, "A paradigm shift in startup support policies is necessary to activate technology-type startups that have great growth potential and can contribute to a virtuous economic cycle."

Mr. Tae added, "Therefore, to activate technology-type youth startups that open future opportunities during industrial transformation, it is necessary to establish a systematic startup education system along with policy support such as expanding startup capital support and fostering a social atmosphere that encourages risk-taking and challenges."

This content was produced with the assistance of AI translation services.