Choosing Between Mid-Sized Company Employment and Franchise Startup: Which One to Pick?

Catch, Gen Z Job Seekers Survey
SMEs 51% vs Startups 49% Neck and Neck
4 out of 10 Consider Starting a Business... Many in Food and Cafe Sectors

Prospective entrepreneurs participating in the 'Franchise Startup Expo' held on May 5, 2023, at COEX in Gangnam-gu, Seoul, are visiting the Global Brand Zone for consultations. Photo by Jinhyung Kang aymsdream@

Recruitment content platform Catch announced the results of a survey conducted on June 15th targeting 1,713 Gen Z job seekers on the topic of ‘Employment at Small and Medium Enterprises (SMEs) vs. Franchise Startups.’ Opinions were evenly split, with 51% favoring employment at SMEs and 49% preferring franchise startups. The most cited reason for choosing employment at SMEs was ‘stable working environment’ at 45%. This was followed by ‘fixed income’ at 24%, ‘lower risk of failure’ at 13%, and ‘benefits such as work-life balance and welfare’ at 11%. Among those who preferred franchise startups, ‘flexible working environment (48%)’ was the top reason. This was followed by ‘higher income potential’ at 29%, and ‘possibility of long-term work without retirement’ at 8%. Other reasons included ‘difficulty finding employment (7%)’ and ‘having a good idea (7%).’

Four out of ten job seekers are considering ‘starting a business.’ When asked if they have intentions to start a business instead of seeking employment, 38% answered ‘yes.’ This figure represents a 3 percentage point increase compared to the same question asked two years ago. The most preferred startup industry was ‘food service, cafes, and other dining sectors’ at 37%, ranking first. This was followed by the ‘IT sector (mobile, apps, etc.)’ at 34% in second place, and ‘online distribution sectors such as internet shopping malls’ at 14% in third place. Other sectors included offline distribution (4.3%), culture/leisure (4.2%), and service (2%).

Kim Jeong-hyun, head of Catch at Jinhaksa, stated, "Gen Z tends to prefer workplaces with less organizational stress and more flexible working environments," adding, "In the case of franchise startups, they are relatively free from working hours and organizational stress, and salaries can be earned based on effort, which explains why their preference is as high as that for SMEs."

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