Young Australians are increasingly showing interest in entrepreneurship, according to the latest report from the NAB Economics' Education Insights Series. The report reveals that nearly half, or 47%, of secondary school students in Australia aim to start their own business after leaving school.
Dean Pearson, NAB's Head of Economics, notes that despite the negative perception that young people feel hopeless in the face of constant change, this generation is driven by "an enthusiastic and civic-minded" spirit. He adds that young Australians are "focused on life after school and the contribution they can make to society," and many are confident in achieving their goals.
Pearson also points out that owning a business appeals to the desires of many young Australians for financial security, work-life balance, and having control over decision-making. With their strong digital literacy, having grown up in a tech-savvy environment, young people are well-positioned to start their businesses. "Young people have a much greater capacity to accept change," Pearson remarks, stressing the importance of adaptability, innovation, and continuous learning for business success.
Kyle Britto, NAB Small Business Banker, underscores the traits necessary for young Australians to launch their businesses, stating, "Starting your own business requires hard work, resilience, and optimism." Britto emphasizes the importance of young entrepreneurs understanding their competitive edge and valuing their worth. He advises against discounting oneself due to youth.
Britto shares several tips for young entrepreneurs:
1. Calculate start-up costs: Understand the financial feasibility of your business idea by estimating expenses and potential profitability. Britto recommends keeping overhead costs low.
2. Understand being your own boss: Running a business involves significant hard work and may require years to become profitable. Discussing the demands with trusted individuals can help aspiring entrepreneurs assess their readiness.
3. Choose a business structure: Selecting the appropriate business structure is crucial, with options including sole trader, company, partnership, and trust. Britto advises seeking an accountant's advice if uncertain.
4. Get an ABN: Register for an Australian Business Number to identify your business, complying with tax requirements, and registering for relevant taxes.
5. Register your business name: Ensure it’s unique by registering it with ASIC, protecting your brand by using the name as a trademark.
6. Develop a business plan: This can help set clear objectives, identify challenges, and craft strategies to overcome them.
Britto concludes with encouragement, "Don’t be afraid to fail, and if you do, pick yourself up, apply those learnings and try again."
This article provides general information and doesn’t address individual financial situations or goals. NAB representatives' views are personal opinions and not recommendations or advice. Seek professional advice before making business decisions.