The research was conducted by the Rating Lab laboratory.
In Ukraine, the survey for the research was conducted by the Rating Sociological Group on the Rating Online platform.
The target audience in Ukraine was youth aged 15-30 years old. The sample size was 900 respondents. The survey method used was CAWI (Computer Assisted Web Interviewing), based on a combined random selection of mobile phone numbers using Big Data from Kyivstar, Vodafone, and messaging apps. The margin of error for the representativeness of the research with a confidence level of 0.95 was not more than 3.5%. The research was conducted from May 20th to May 25th, 2023.
The research in the EU was conducted on youth aged 15-30 years old, covering 27 countries of the European Union (EU27). The sample size was 25,992 respondents, with 500 respondents in Luxembourg, Cyprus, Malta, and 1000 respondents in all other countries.
The survey in the EU was conducted as Eurobarometer 10 - 20 October 2022, commissioned by the European Commission, Directorate-General for Employment, Social Affairs and Inclusion.
The survey method used in the EU was CAWI (Computer Assisted Web Interviewing) with the use of the Ipsos panel and their partners' network. The research was prepared by experts Tetiana Skrypchenko, Hanna Chatchenko, under the guidance of Mariana Tkalych, the director of the Research Laboratory Rating Lab, Ph.D. in Psychological Sciences, and professor.
A significant majority of young people in Ukraine prefer self-employment and owning their own businesses (73%), while only 19% want to be employed as workers. In contrast, in the EU, the majority of youth aspire to be employed as workers (56%), with only 39% preferring self-employment.
This trend towards self-employment is not surprising in Ukrainian society, where it has been prevalent for some time. Moreover, the current realities demand sufficient mobility, which may push the youth towards remote work. However, responses to further questions show that this intention remains more of an ideal and a socially desirable choice.
In the EU, the youth is not inclined towards self-employment, especially in Northern European countries, as it creates more risks for job security, leading to a decline in this trend. Notably, among self-employed workers in the EU, a higher number face poverty or social isolation compared to employed workers, where such risks are half as much.
This difference in attitudes could be attributed to factors such as high taxes on businesses or better conditions for employed workers, including legislative and social protections, active labor unions, contract enforcement, more formal employment opportunities, and a smaller shadow economy. It is also possible that the desire for independence and decision-making freedom, along with a willingness to take risks, is less prevalent among Ukrainian youth.
In 2021, nearly a quarter of all self-employed individuals in the EU were at risk of poverty and social isolation (while this figure was only 11% among employed workers). This was the only category that experienced an increase in poverty compared to the previous year, largely due to the pandemic.
Furthermore, the level of self-employment in the EU has been decreasing over time, reaching its lowest level of 13.1% in 2021. The EU is gradually moving towards wage employment rather than self-employment. Similarly, in both the EU and Ukraine, self-employment is more desired by younger respondents. However, while in the EU, more young women than men aspire to be employed workers, there is no such difference in Ukraine. The difference between urban and rural youth is minimal – in cities, only 5% more aspire to be employed workers, likely due to greater opportunities for well-paid work.
Affluent youth are more oriented towards self-employment as they have more financial capital for potential investments in their own businesses.
A significantly smaller percentage of unemployed young people in Ukraine (61%) want to be self-employed, possibly because they don't consider their experience sufficient, lack confidence in their ability to find work, or simply have no desire to work.
For those Ukrainians who do choose to work for a company, a regular stable income is the most important factor (64%), reflecting the instability of modern life. Insufficient finances and resources for self-employment (42%) and lack of confidence in their abilities (38%) are the second and third most important factors, respectively. Additionally, 38% seek fixed working hours, and 36% desire additional knowledge, skills, and abilities.
Among the most frequently mentioned reasons for not taking the risk of self-employment, the youth often lack additional knowledge and confidence, and perhaps support from older colleagues. Skepticism from investors scares them the least.
For European youth, a regular stable income is also important (46%), but for a smaller percentage of respondents. Job security and access to social protection are much more crucial to them (39%). Insufficient financial resources (22%) and fixed working hours (29%) are less important to them. They are more concerned that investors do not take young people seriously.
The most motivating factors for Ukrainian youth towards self-employment are personal satisfaction from implementing their ideas (65%), followed by the desire for improved financial status (55%) and independence and freedom (55%). These values are very important for young people as their tasks at a young age are to separate, create their own social circle, and learn to understand their own needs. That's why a focus on family is less relevant.
Personal satisfaction from implementing ideas is of interest to Europeans almost half as much (33%), as is the prospect of improved income (29%), likely because income opportunities are more limited in Ukraine, ranging from very little to significant financial growth. They are also less driven by the desire to contribute to society (17% vs. 28% in Ukraine). However, they are almost twice as interested in the chance of quick profit (14% vs. 8%), utilizing existing business opportunities (14% vs. 6%), and being influenced by family or friends (9% vs. 5%).
It's interesting that the younger group is significantly more oriented towards quick profit. This might be due to the fact that the 15-18-year-old category is not yet familiar with professional activities and has certain romanticized notions about entrepreneurship. As Ukrainian youth get older, they become more oriented towards improving income and contributing to society, as they value social involvement in building society. The more affluent young individuals see entrepreneurship as an opportunity for personal satisfaction from implementing ideas. On the other hand, those with a lower standard of living see entrepreneurship as a means to be independent and, at the same time, useful for society. Working or studying youth perceive self-employment as an opportunity for implementing ideas. Working youth, in particular, show more active steps towards starting a business as any kind of work and employment provides valuable experience. Youth who are still studying have not taken any steps towards entrepreneurship yet.
In the EU, the perception of entrepreneurship as an opportunity to follow one's passions and as a way to support the country is less pronounced (46% compared to 63% in Ukraine). It seems that Europeans view their own businesses differently than we do, with less emphasis on interests and self-expression. For them, it is less about self-realization and patriotism. However, the importance of involving employees in decision-making is twice as high (15% compared to 7%), even though it is not among the top goals – collegial decision-making is more important.
In Ukraine, the main goal is the desire of the youth to move according to their own interests and passions (63%). In their aspirations, they move away from the perception of work solely as a means of making money and from the understanding of employees as "cogs in the system." From the perspective of modern career guidance theories, this shift corresponds to contemporary trends, as our interests are what can effectively motivate personal development and make work enjoyable.
Supporting the region and the country is also considered essential (39%), which aligns with the times of war, growing patriotism in society, and strengthening social ties (in the EU, only 12%).
The majority of Ukrainian youth aim to do business in the field of trade (18%) and IT or online commerce (14%). Sectors such as culture, design, and tourism are also relevant. Manufacturing ranks fifth with only 7%. The youngest individuals are more inclined towards IT and online commerce, while older ones lean towards trade, design, and manufacturing. Design is the most attractive business option for unemployed youth.
Less interesting are education, scientific research, and engineering, which in Ukraine do not appear profitable and are mainly carried out in a non-commercial way due to extremely limited state funding. Even less attractive are marketing, business support, and financial services. The interest in commerce and retail trade among Ukrainians is twice as high as in the EU. Also, the interest in manufacturing is almost twice as high. On the other hand, Europeans show a higher interest in building businesses in the fields of marketing, public relations, advertising, education, scientific research, and consulting. This could be due to the EU's orientation towards small businesses focused on intellectual services rather than production and agrarian sectors.
Regarding initial capital, Ukrainian youth primarily rely on themselves and their own savings (77%). About a quarter rely on their salary and banks. Other possibilities to attract initial capital seem unlikely. Non-working youth will seek support from state institutions, while working youth rely on their own savings and existing salary.
Ukrainians are much more willing to rely on their own savings and salary compared to Europeans (77% vs. 57%). Europeans, on the other hand, place more trust in banks (33%), state institutions (12%), crowdfunding (11%), and microfinancial lending (9%). Thus, while Ukrainian youth are mostly self-reliant, Europeans are more willing to seek help from other sources.
Ukrainian youth describe the image of an entrepreneur as someone who is primarily brave and ambitious – these are the personal qualities associated with the role. The rational (functional) component is that of a person who creates new products, services, and job opportunities. Respondents associate entrepreneurs with positive characteristics, mostly disregarding the negative ones. This is not surprising, as the majority of the youth aspire to engage in entrepreneurship and somewhat idealize this type of occupation.
On the other hand, Europeans, more often than Ukrainians, mentioned negative characteristics of entrepreneurs, such as "only thinking about profit" (18% vs. 9%), "exploiting the labor of others" (14% vs. 8%), and "imprudent" (8% vs. 1%). While Ukrainians tend to focus on positive traits such as bravery (57% vs. 34%), ambition (53% vs. 32%), and the ability to create something new (44% vs. 22%).
Most likely, we are dealing with different cultural perceptions of entrepreneurs. In Ukraine, entrepreneurial activity is more idealized and even romanticized, whereas in the EU, it is perceived as less attractive. In Ukraine, entrepreneurship is seen as a means of self-realization and achieving success in an unstable, crisis-ridden world, while in the EU, the priority for the youth is regular employment – something that provides stability and social guarantees.
Those inclined towards starting their own businesses have a more appealing image of an entrepreneur, one who is not only ambitious but also strives to make the world a better place.
The majority of entrepreneurial qualities in the self-assessment of Ukrainian youth are at a high level.
More than 80% (45% exactly like me, 42% mostly like me) of respondents consider themselves to be individuals who value initiative and freedom of action; 75% (30% exactly like me, 45% mostly like me) value innovation, new products, and services; 67% (25% exactly like me, 42% mostly like me) are willing to take risks to achieve their goals; 57% (21% exactly like me, 36% mostly like me) consider it important to be a leader, not just a team member; 42% (15% exactly like me, 27% mostly like me) prioritize freedom over order and security; 42% (15% exactly like me, 27% mostly like me) are skilled at "selling" goods or ideas to others; 27% (9% exactly like me, 18% mostly like me) support aggressive competition.
Thus, the ability to "sell" and aggressive competition are exceptions where the majority expresses a negative attitude, likely due to the perception of "aggressiveness." This also aligns with the image of entrepreneurs formed among Ukrainian youth: brave, ambitious, innovative, and creators of new job opportunities.
Therefore, this overall perception contributes to the high interest in becoming an entrepreneur – an attractive image that enhances self-esteem and builds an appealing professional self-image.
In terms of gender differences, entrepreneurial qualities are less pronounced among women. However, significant gender differences are present in the importance attached to innovation and the desire to be a leader, traits traditionally emphasized more in men due to their socialization in leadership and change creation. Men are also more inclined towards supporting aggressive competition, which is a masculine trait, as women are generally less prone to aggressive behavior, a result of their socialization. Freedom is also slightly more important for men. Thus, men show a higher inclination towards leadership, innovation, aggressive competition, and freedom of action than women.
The youngest age group significantly differs in considering freedom and salesmanship as important entrepreneurial qualities, especially compared to the oldest age group. Conversely, the oldest age group does not find a willingness to take risks as strongly characteristic of entrepreneurs. This is understandable, as people tend to evaluate the consequences of their actions better as they age and are less inclined to take impulsive risks.
Individuals with a high level of readiness to take risks in achieving their goals are more likely to show a willingness to create their own business – this connection is the strongest. The second factor is freedom of action, initiative, and sales skills. The desire to be a leader and a drive for innovation rank third.
