One In Two Millennials Want To Run Their Own Advisory Business - Research

Josh O'Neill

2 November 2016

Nearly half of the UK's millennials find the idea of running their own financial advisory business attractive, according to a study from Academy, the training and development arm of UK wealth manager St James’s Place.

After surveying 1000 men and 1000 women, the firm found millennials - those aged between 18 and 34 - to be the most entrepreneurial generation in the UK, with 82 per cent of respondents wishing to run their own business one day. The drive to start a business was almost 10 per cent higher among millennials than in the older generations surveyed.

Notably, 49 per cent of young respondents found the idea of running a financial advisory business attractive, compared to 33 per cent of 35- to 54-year olds and 16 per cent of those over 55. However, 48 per cent claimed they currently “lack control” at work and seek more flexibility in their working lives.

The squeeze on youngsters’ wages was also reflected in the results, as 17 per cent of millennial respondents felt an increase in earnings would be the most consequential benefit of running their own business.

In addition, research revealed 16 per cent of millennials ultimately want to set their own working hours by running their own business and 14 per cent would like the chance to work from a location of their choice.

When faced with hypothetical challenges, 32 per cent of millennials said attracting customers would be the most difficult part of running their own business, followed closely by the 28 per cent that answered managing the company’s finances.

A quarter of respondents felt a loss of income would be enough to give them cold feet, while 21 per cent cited fear of failure as the most significant deterrent.

“Our research reveals a clear appetite amongst millennials to start their own business, partly due to the frustrations felt within the workplace,” said Adrian Batchelor, academy director at St James’s Place Academy. “As young workers have been hardest hit by the wage squeeze since the financial crisis, it’s no surprise they yearn for greater autonomy and reward for their hard work.”

A recent study conducted by SEI Private Wealth Management suggested that ultra-high net worth millennials rely too heavily on their families for advice on financial management.