Gen Z entrepreneurs ditching university in favour of starting their own businesses?

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 /PRNewswire/ -- 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