GoDaddy research finds young Canadians skipping university to pursue entrepreneurship with confidence
Research from GoDaddy reveals that young business owners in Canada are less likely to have attended university compared to older entrepreneurs.
The data, gathered through the Venture Forward initiative, shows that only 47 percent of Gen Z entrepreneurs surveyed have a university degree.
This figure is notably lower than the 65 percent of Millennials, 58 percent of Gen X, and 56 percent of Baby Boomers who reported having graduated from university.
The findings come from Venture Forward, a multi-year research project that analysed 770,000 Canadian online microbusinesses, which typically employ ten or fewer people.
Across all age groups surveyed, 63 percent of entrepreneurs have a degree or higher, and just 13 percent left education after completing high school. However, for Gen Z entrepreneurs, 25 percent ended their education after high school.
The rising cost of higher education in Canada may explain why younger generations are choosing entrepreneurship over university.
Many young entrepreneurs find the financial burden of tuition fees too high. Among those who did graduate from university, 48 percent said their degree was not valuable for life as a business owner.
Starting a business appears to be accessible to many. Nearly three in ten Canadian entrepreneurs surveyed needed less than $500 to start their venture, and 12 percent needed no start-up capital at all.
GoDaddy’s research shows that a growing number of Canadians, especially in rural areas, are opting for entrepreneurship over university. Among surveyed entrepreneurs without a degree, 25 percent live in rural areas, compared to 13 percent of those with a university education.
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.”
Lee added that it has never been easier to start a business, thanks to low start-up costs and resources like GoDaddy Airo, which allows small business owners to quickly build and launch websites.
The research also reveals that entrepreneurs without a university degree are more likely to hire others without a degree, with 61 percent doing so, compared to 43 percent of entrepreneurs with degrees.
Additionally, 71 percent of non-graduate entrepreneurs surveyed expressed confidence in their business outlook over the next six months, slightly higher than the 67 percent of those with a degree.
Lee concluded, “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.”
