Preference for IT Service Industry
High Closure Rate but 'Chicken Restaurant' Startups Due to No Need for Specialized Skills
Survey of 4,500 Men and Women Over 40 by Venture Business Association and AllWork Portal for Middle-Aged Employment and Startups
Among retirees and prospective entrepreneurs aged 40 and over, 6 out of 10 prefer technology startups that utilize their skills and experience rather than food and beverage franchise startups. Starting a chicken restaurant or convenience store accounted for 25.3%, while those choosing a pub or coffee shop made up 5.1%. [Image source=Yonhap News]
[Asia Economy Reporter Han Seung-gon] Among retirees aged 40 and above and prospective entrepreneurs, 6 out of 10 prefer technology startups (in manufacturing, manufacturing-related services, and knowledge service sectors) that utilize their career and experience over food and beverage franchise startups.
According to a survey conducted by the Korea Venture Business Association and the middle-aged employment and startup portal Allwork (CEO Kim Bong-gap) from July 19 for two weeks, targeting 4,500 men and women aged 40 and above nationwide, 45.3% of respondents wished to start technology businesses. IT-related service industries such as platforms accounted for 19.1%, chicken restaurants and convenience store startups accounted for 25.3%, and pubs and coffee specialty shops were chosen by 5.1%.
The main reason for preferring technology startups was "able to utilize experience and familiarity," at 54%, followed by "government subsidies are abundant" at 26%, and "low failure rate" at 12%.
The reason for hoping to start a technology business was highest at 54%, with "can utilize experience and familiarity." Photo by Joongjangnyeon Employment and Startup Portal Allwork
Despite a closure rate reaching 80-90%, the reason for choosing so-called "chicken restaurant" startups was identified as "no specialized skills required" at 84.2%, "low cost burden" at 10%, and "easy to start" at 4.2%. This is interpreted as many entrepreneurs jumping into the startup front without preparation simply because of good accessibility.
The purposes for starting a business were surveyed as "difficulty in reemployment" at 38.2%, "wanting to work freely" at 29.5%, and "preparing for retirement funds" at 20%.
Regarding startup support led by government and public institutions, more than two-thirds (73.6%) expressed dissatisfaction. Only 7.25% responded that they were satisfied. The biggest reason for dissatisfaction was startup education focused on the 20s and 30s generation, exceeding half (52.4%), followed by after-the-fact measures such as "closure support funds" at 28.2%, and lack of startup education for the middle-aged at 17.2%.
The biggest reason for dissatisfaction with startup support from government and public institutions is that startup education is focused mainly on the 20s and 30s age groups, accounting for half (52.4%). Photo by Jungjangnyeon Employment and Startup Portal Allwork
Regarding startup education and consulting for middle-aged retirees and prospective entrepreneurs, 97% answered that it is necessary, showing overwhelming opinions for strengthening current startup support measures and education systems. Startup capital was under 100 million KRW for 29.2%, 100-200 million KRW for 37.1%, and over 200 million KRW for 33%, with preparation periods of 6 months to 1 year at 51.8%, and 3 to 6 months at 31.6%.
Kim Bong-gap, CEO of Allwork, emphasized, "The middle-aged generation over 40 is thoroughly marginalized not only in the employment market but also in the startup market. Existing startup policies are skewed toward food and beverage, distribution, online services, and startups focused on the 20s and 30s generation, lacking consideration for this group. We need to reorganize education and consulting systems in line with the volatile startup trends and significantly increase government support to back this."
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