Even Starting a Business is Not Easy for Young People... First Decline in Entrepreneurs Under 30

[Financial News] The number of young entrepreneurs giving up on starting a business is increasing. Young people, who lack quality jobs, venture into entrepreneurship but are being pushed into a situation where even starting a business is difficult due to sluggish domestic demand and high-interest rate policies.
According to the National Tax Service National Tax Statistics Portal on the 14th, the number of young entrepreneurs under 30 operating businesses in the first quarter of this year was 354,672 (monthly average), a decrease of 26,247 from a year ago. This is the largest decline since related statistics began to be compiled in September 2017.
Typically, as the economy grows, the number of active businesses increases. The number of active young businesses has maintained an upward trend since statistics began to be compiled, even as the young population decreases.
Even during the COVID-19 period from 2020 to 2022, it increased every quarter. However, it decreased for the first time by 19,400 in the third quarter of last year. The decline continued in the fourth quarter (-21,527) and the first quarter of this year with a larger decrease.
A decrease in active businesses means that there are more closures or suspensions than startups.
The number of closed businesses has been increasing since 2023, surpassing 1 million for the first time last year.
The decline in young entrepreneurs is pronounced in the retail sector. In the first quarter of this year, the number of young entrepreneurs in the retail sector was 127,089, a decrease of 16,185 from a year ago.
About one-third of young entrepreneurs are concentrated in the retail sector, and 62% of the decline in young entrepreneurs in the first quarter occurred in retail.
The number of young entrepreneurs in the food industry (46,269) also decreased by 5,507 in the first quarter. This is also the largest decline since related statistics began to be compiled.
Due to the sluggish construction market, the number of young entrepreneurs in the construction industry (14,472) also decreased by a record 247 in the first quarter. After turning to a decline for the first time in the third quarter of last year, it has continued to decline for three consecutive quarters.


mirror@fnnews.com Kim Kyuseong Reporter