No entrepreneurial guidebook or in-person mentoring from a self-made billionaire can ever fully guarantee the success of a business. However, it seems that Gen Z and millennials in the Asia Pacific region are ready to face the challenge head-on.
A 2021 Asia Pacific Young Entrepreneurs Survey by Herbalife Nutrition revealed that 72% of Gen Z and millennials in the region aim to start their own businesses. Nearly nine out of ten (87%) of them believe that the best age to start a business is before turning 40, with the ideal age being 27.
The global nutrition company surveyed over 4,000 individuals aged 18 to 40 to explore entrepreneurship trends across Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Taiwan, and Vietnam.
“Many aspiring entrepreneurs are motivated by the desire to follow their passions and become their own bosses. They view their youth as an advantage, especially when it comes to being tech-savvy and having fresh ideas,” said Stephen Conchie, Senior Vice President and Managing Director, Herbalife Nutrition Asia Pacific.
Right Skills and Experience Needed
While they are eager to become entrepreneurs, the respondents mentioned that they are not rushing into business without first gaining relevant experience and the necessary skills.
“Most respondents feel overwhelmed by their lack of experience and are worried about the costs of starting a business, as well as the financial and market knowledge required. This is where learning good business basics, having mentors, the right resources, and a supportive community can help new entrepreneurs navigate the uncertainties ahead. These steps can increase their chances of success,” added Conchie.
Starting young, the respondents said they are more adaptable to new technology and are more likely to embrace cutting-edge innovations than older generations. They also bring fresh, unexplored ideas that could lead to groundbreaking results when fully developed.
When asked about their motivations for wanting to become entrepreneurs, the top reasons included following their passion (40%), becoming their own boss (39%), seeking more flexibility in their work (37%), supporting their families (36%), and wanting a career change (33%).
Money is (Always) an Issue
The journey to success begins with a single step, but the most crucial part of starting a business comes after that first step. Finances play a big role in where that step leads, and Gen Z and millennials are well aware of this. Survey respondents mentioned that the initial costs (38%) and the lack of financial and market knowledge (35%) are the main challenges in making their entrepreneurial dreams a reality.
Finding angel investors and forming partnerships can be key to securing the right investments needed to launch their ideas, but this is easier said than done, especially for young entrepreneurs. It’s important to have your own financial investment first, whether it’s 12 months’ worth of savings or a freelance job to provide a financial safety net.
Many successful entrepreneurs, like John Koum, who worked as a janitor before launching WhatsApp, have had to make significant sacrifices to achieve their goals. It’s wise to save enough money so that you don’t have to worry about rent or food while growing your business.
Don’t forget about insurance, licenses, and taxes—they will take a significant portion of your profit margin.
Beyond financial resources, survey respondents mentioned that training and education (55%) and access to business tools (45%) will also contribute to their success.
