Inflation spooking eager Gen Z from launching businesses, survey finds

The cost-of-living has spooked eager Gen Zers from starting businesses in Australia, new research finds.

Gen Z will do all they can to dodge a standard nine-to-five job, with a large survey finding the generation is far more willing and likely than the rest of the Australian population to start their own business.

The survey by small business management platform MYOB polled more than 1000 Australians.

Three-quarters of Gen Zs (born before 1997) either have, or would consider, starting their own business, compared to 48 per cent of Australians overall.

The main motivations for Gen Z respondents to start a business are to be their own boss (41 per cent say) and to move away from the traditional 9-5 work life (37 per cent).

Australians in the highest 20 per cent income group receive 42 per cent of all national income, UNSW research has found. Picture: iStock

Australian wages have just now gotten ahead of inflation in the latest financial quarter.

But while many more Gen Zs would like to start a business - 43 per cent say it would be easier to start a business now than ever before - cost-of-living pressures are too much of a deterrent for 63 per cent of the Gen Zers.

The MYOB surveyed 1083 people, aged 18 to 75, over the course of one week in late August this year.

The MYOB survey polled more than 1000 Australians. Picture: NewsWire / Glenn Campbell

An ambitious guiding light for anybody in Gen Z is 19-year-old Melbourne designer Kiana Mei.

Ms Mei finished high school last year, has left the family home and works on her business full time, which started at Melbourne’s Queen Victoria Market when she was 15.

The designer credits the independence of being her own boss as one of the driving factors for her success.

More than half of Australia’s Gen Z who were surveyed already have a business idea, and are confident they could find the money to start, but 52 per cent say they are waiting for more favourable economic conditions. Picture: iStock

“The next generation are very motivated to start a business,” MYOB chief executive Paul Robson said.

About half of Gen Z already has a business idea, 55 per cent are confident in their ability to succeed, and 49 per cent are confident they could get funding, the survey finds.

“Overall, this generation is more positive and optimistic about starting a small business as a career pathway, compared to other generations polled,” Mr Robson said.

Treasurer Jim Chalmers has taken every opportunity of late to remind the public real wages are growing again. Picture: NewsWire / Martin Ollman

“This is great news for the next wave of businesses, and the contribution they make to our economy.”

Government schemes such as the $20,000 instant asset write-off scheme and advice through the Industry Growth Program gave major help, he said.

“It’s vital the government keeps initiatives like these on the agenda to support small businesses to confidently take the first step as well as helping new businesses survive their first few years.”

The instant write-off scheme was bumped up from $10,000 to $20,000 by the federal government last year, and at this stage the threshold comes back down to $10,000 on July 1, 2025.

Originally published as Inflation spooking eager Gen Z from launching businesses, survey finds