Young people often get started in business without seeing themselves as entrepreneurs
Online trading increasingly starts casually
In recent years, the number of business start-ups has stagnated, and demand for websites and domain names from 18-to-29-year-olds has fallen. So, are young adults still interested in having their own (online) businesses? Apparently, they are, according to a recent survey of 500 (young) adults that NIQ has done for SIDN. The interest in setting up online is still there, and young adults still see the value of having their own domain names. However, the pathways they follow are changing.
‘Accidental entrepreneurship’ is on the rise
The survey found that an e-commerce venture is increasingly likely to start as a hobby or a sideline on social media or online trading platforms. While young adults are at the forefront of the trend, other age groups are doing the same thing. They’re selling products, offering services or building an audience for their content. Many of the people involved don’t see themselves as entrepreneurs; they’re simply pursuing their hobbies. That makes them distinct from ‘traditional’ business start-ups, where people make a conscious decision, register their business and claim the corresponding domain name.
Websites typically added later
Many of the things that people setting up businesses have traditionally done at the outset are being done later by today’s accidental entrepreneurs. So, for example, they don’t register with the Chamber of Commerce until their ‘hobby’ starts to become something more. And, while they still see websites as important, they don’t get their own until customer numbers and turnover start to build. By that stage, a website is seen as a way of improving their findability and winning the trust of shoppers and clients.
Table 1: Which message has most traction amongst young entrepreneurs?
Message | In business <30 |
A domain name increases findability for search engine users | 28% |
A domain name makes you look more professional | 21% |
A domain name gives customers more confidence | 18% |
I’m not easily persuaded by any message | 13% |
A domain name gives you a place to bring everything together | 11% |
A domain name means you’re not totally reliant on social media platforms | 6% |
Other | 2% |
Digital autonomy isn’t a priority
Interestingly, young people are largely unconcerned about depending on big platforms, such as Bol and Amazon, and the consequent lack of digital autonomy. The argument that having your own website gives you independence resonates less with them than, for example, the added value of Google leads. Added value has to be direct and tangible.
Websites still desirable
Although the timelines are shifting, people do still value websites. Amongst young adults, 8 out of 10 think that a website makes a business look more professional. Nevertheless, 43 per cent of the young adults surveyed indicated that the need for a website isn’t as great as it used to be. That appears to be linked mainly to the availability of alternatives, such as social media and trading platforms, which are often seen as sufficient for a business taking its first steps.
Takeaways for the internet industry
For providers of domain name registration services, websites and hosting services, the survey highlights an interesting development. Some future domain name registrants are already commercially active, but haven’t yet reached the point in their business story where a domain name is part of the narrative. The key issue, therefore, is not whether a businessperson wants a website, but when they’re going to need it.
Trends in online visibility
Later this year, SIDN will publish the findings of wider research into online visibility and e-commerce in the Netherlands. Topics to be covered include the changing roles of websites, domain names, social media, AI tools and platforms in the journey from start-up to business with a distinctive online presence. The study is intended to provide pointers to how the demand for digital services is likely to develop in the years ahead.
