The economy is booming—but the desire to become self-employed is waning. This simple equation holds true in Germany today as well. Now, a new study offers hope that the share of self-employed people in the labor force will rise slightly in the future. The RKW Competence Center reports on a survey that was part of the so-called INSA Study 50plus 2017 and targeted 3,000 people.
About one in ten respondents is currently self-employed. About one in five could imagine becoming self-employed. When broken down by age group, the desire to leave salaried employment varies. About one in three people under 50 would consciously choose to become self-employed. The picture is even clearer among 18- to 29-year-olds: here, about half of those surveyed can imagine becoming self-employed. In contrast, only one in ten of those over 50 could imagine becoming self-employed. Are younger people also more active? Indeed! Nearly one-third of people between the ages of 18 and 29 have already actively explored the possibility of self-employment.
Entrepreneurship and Freedom of Choice
For founders, the greatest advantages are freedom of choice and flexibility. In second place, the opportunity to bring their own ideas to life is the most appealing factor driving them toward self-employment. Further down the list are the chance to engage in entrepreneurial activities and the potential to earn more. In contrast, the over-50 age group sees self-employment as an opportunity to escape unemployment and supplement their retirement income; they also value the chance to pass on their experience and knowledge.
What are the hurdles to starting a business?
What is holding back the desire for entrepreneurial freedom? One in two respondents under the age of 50 would be afraid of starting their own business. This fear is most widespread among those aged 30 to 39, at 57 percent. In contrast, only 49 percent of those aged 50 to 59 share this fear. This shows that the fear of becoming self-employed decreases with age.
The different age groups reported varying challenges in their day-to-day business operations. One in three respondents under the age of 50 cited a heavy workload, stress, and constant availability as burdens of self-employment. Those over 50, on the other hand, are concerned about a lack of personal and financial security. Age is also rated as a major problem by both the youngest and the oldest respondents. However, health limitations do not deter older founders.
Startup Funding and Lack of Expertise
Financing is perceived as the biggest hurdle on the path to starting one’s own business. Bureaucracy, the fear of failure, and a lack of expertise are other major obstacles in the startup process.
