The Desire to Solve Problems Increasingly Influences Young People’s Decision to Become Entrepreneurs
In the Nordic countries, young entrepreneurs aim to address global challenges such as climate change, security, and equality as entrepreneurs, aligning with the United Nations' Sustainable Development Goals (SDGs). This insight emerged from interviews conducted by Professor Matti Muhos in 2023 with Gen Z digital startup entrepreneurs in the Nordics. The interviews will continue this year in Finland.
"The Nordic countries perform excellently on the UN’s Sustainable Development indicators. It was inspiring to see how young people here are using entrepreneurship to contribute to these goals", Muhos explains.
Young Entrepreneurs and Value-Driven Work
Liisa Tenhunen-Ruotsalainen, Regional Director of the Youth Entrepreneurship and Economy (NYT) organization, notes that an increasing number of young people want to become entrepreneurs to engage in meaningful work.
"According to NYT's Future Report published this year, 80% of young people want to work in alignment with their personal values", she says.
A report by the National Youth Council shows that becoming an entrepreneur is typically a voluntary and desired career choice for young people. However, in some fields, such as hairdressing, craftsmanship, and creative industries, entrepreneurship is often a necessity for employment.
Twenty-four-year-old entrepreneur and business student Janina Tihinen founded her music business, Soundeco, to incorporate more music into her daily life.
"Entrepreneurship is a fantastic way to turn a passion into a profession. It also allows you to balance freedom and responsibility as you like. Entrepreneurship fits well alongside studies — I’ve been studying the entire time I’ve been running my business", she shares.
Fear of Failure and Opportunities for Young People
According to the Global Entrepreneurship Monitor (GEM) study, fear of failure is a significant barrier for most Finns considering starting a business. Muhos believes young people should not be afraid of failure.
"Small mistakes and failures are an integral part of the process when trying something new. More mistakes mean more opportunities to learn. Risks are also lower when you’re young, as you typically don’t have major financial commitments like a mortgage", Muhos says.
Nineteen-year-old Michael Pietrzyk, who runs the social media marketing company Mediama, finds that acquiring customers is the most challenging aspect of entrepreneurship.
"Sending emails or attending meetings can be difficult for some. You need to be motivated and disciplined — putting in 110% effort is what leads to success, and it can come quickly", he notes.
Muhos emphasizes the need for structural changes to make entrepreneurship a viable option for young people.
"It’s crucial to create equal opportunities between entrepreneurship and traditional employment so that young people don’t have to choose their livelihood based solely on whether they become entrepreneurs or employees", he says.
SuomiAreena Discussion: "When Young People Become Entrepreneurs"
Matti Muhos, Liisa Tenhunen-Ruotsalainen, Janina Tihinen, and Michael Pietrzyk participated in the SuomiAreena discussion on Thursday, June 27, on the Raatihuoneenpuisto stage in Pori. The discussion was streamed live on MTVKatsomo and will remain available for later viewing through the same link.
More Information:
NYTin tulevaisuusraportti 2024 (in Finnish)
Katsaus nuorten hyvinvointiin 2023 (tietoanuorista.fi) (in Finnish)
Nuorisobarometri 2023 (in Finnish)
Global entrepreneurship monitor 2021–2022 Finnish report