Exploring entrepreneurial intention among European Union youth by education and employment status

The relatively high vulnerability of young Europeans in the labour market compared to other age groups has led many to seek alternative employment solutions, such as entrepreneurship. While not a comprehensive solution, entrepreneurial initiatives among youth…
Ernie Stanton · 6 days ago · 4 minutes read


**Main Article****Title:** Empowering European Youth: Exploring Entrepreneurial Intentions Across Distinct Subgroups**Abstract:**In response to high unemployment among young Europeans, policymakers prioritize entrepreneurship as a job creation solution. Yet, research on youth entrepreneurship often lumps together a heterogeneous population, obscuring critical differences. This study examines entrepreneurial intentions among four distinct EU youth subpopulations based on education and employment status: NEETs, students, employed youth, and those balancing study and work. Data from Eurobarometer 513 reveal substantial variations in intentions and key motivators across these groups. NEETs prioritize better income prospects, while students emphasize business opportunities. Working individuals seek financial stability, and youth who both study and work are driven by job creation and income enhancement. Addressing specific barriers and fostering support tailored to the needs of each subgroup is crucial for effective youth entrepreneurship policies.**Introduction:**Entrepreneurship is increasingly seen as a pathway for youth employment in Europe. However, the entrepreneurial landscape for young Europeans is complex and multifaceted. This study aims to identify the unique characteristics and aspirations of youth with entrepreneurial intentions within four specific subgroups:1. NEETs (Not in Education, Employment, or Training)2. Students3. Employed youth4. Youth balancing study and work**Literature Review:**Youth entrepreneurship research faces challenges in unravelling the factors that influence entrepreneurial intentions. Existing studies often focus on specific categories of youth or employ theoretical models that may not fully account for the contextual factors shaping individual aspirations. This study contributes to the literature by examining the unique entrepreneurial profiles of these four youth subgroups, recognizing the importance of considering their diverse backgrounds and circumstances.**Data and Methodology:**The Flash Eurobarometer 513 (Social Entrepreneurship and Youth) survey provides the data for this study. Logistic regression models are employed to assess the influence of education, employment status, attitudes, and other factors on entrepreneurial intentions within each subgroup.**Results and Discussion:****NEETs:**- Motivated by the prospect of better income- Perceive financial risks, lack of education, and administrative challenges as barriers- Prefer personal savings as a primary financing source- Seek support for business plan development and microfinance options**Students:**- Driven by exploiting business opportunities- Familiar with entrepreneurship and perceive it as a desirable career path- Emphasize the importance of knowledge and skills and prefer online content creators for entrepreneurship training- View banks negatively as a financing source and prioritize personal savings and microfinance providers**Employed Youth:**- Seek improved income prospects and autonomy- Identify financial risks, unfavorable economic climate, and workload as barriers- Prefer personal savings, salaries, funds from family and friends, and venture capital for financing- Value entrepreneurship training provided by EU institutions, entrepreneurship coaches or networks, and online content creators**Youth Balancing Study and Work:**- Motivated by a lack of job opportunities and the potential for increased income- Perceive financial resource constraints as a significant barrier- Prefer diverse financing sources, including personal savings, current salary, venture capital, and support from business incubators- Emphasize the importance of financial support and consider training as less beneficial**Conclusions:**Young Europeans have varied entrepreneurial aspirations, with each subgroup exhibiting unique profiles. Addressing the specific motivators, barriers, and support needs of each group is essential for effective youth entrepreneurship policies.**Policy Implications:**- Enhance educational programs with practical entrepreneurial skills and informal learning methods- Tailored initiatives should address the educational and professional gaps of each youth subgroup- Promote entrepreneurship in less developed regions to improve resource access- Facilitate diverse financing options for youth entrepreneurs- Address concerns related to financial risks and economic conditions- Recognize the importance of entrepreneurship in addressing youth unemployment and fostering a more inclusive economy**Limitations and Future Research:**- The study relies on cross-sectional data, limiting the ability to infer causality- Future research could examine the impact of entrepreneurial intentions on the actual creation of successful businesses- Exploring country-level institutional variations in youth entrepreneurship would provide a more comprehensive understanding