SINGAPORE: Some fresh graduates are starting businesses after struggling to find jobs, as economic uncertainty and fewer job vacancies make starting a business seem less risky than waiting for employment.
Associate Professor Marilyn Uy of Nanyang Business School told Channel News Asia (CNA) that a tougher job market may be nudging young people to venture into entrepreneurship earlier than usual.
She noted that most entrepreneurs spend three to eight years in the workforce building skills, savings and networks, or spotting problems worth solving, but when jobs are scarce, the opportunity cost drops, pushing fresh graduates to take the leap sooner as there is less to give up.
Entrepreneurship platform Wavesparks co-founder Lim Ee Ling echoed this sentiment, stating that young founders are pursuing what they really want since “the stable path is no longer stable.”
Unemployment for those under 30 hit 5.5% in September, while next year, nearly three in five employers plan to freeze hiring, and almost half intend to moderate or freeze wages, with larger companies more likely to cut staff, the Singapore National Employers Federation (SNEF) said earlier this month.
At the same time, the number of self-employed workers rose to 179,200 this year, with 95.5% choosing such work by preference, the highest rate since 2016. Also, nearly 14,800 new businesses with at least one founder aged 30 or below were registered as of Nov 21, according to the Accounting and Corporate Regulatory Authority (ACRA).
Still, Action Community for Entrepreneurship CEO Patrick Lim said the desire for career freedom remains the most common reason for starting a business.
Success stories of businesses online may have also encouraged those wanting to try entrepreneurship, Ms Lim added. /TISG
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