More than forty percent of independent workers are representatives of the millennial generation.
Russia's Self-Employment Surge Amongst Gen Y and Z
Millennials (Gen Y) and Gen Z are shaking up the job market in Russia by driving an unstoppable wave of self-employment, according to a recent study by VTB Bank. With more than 48% of self-employed folks being millennials, these digital natives are leveraging technology and their love for freedom to build their own businesses.
Interestingly, the Gen Alpha crowd is poised to join the self-employed ranks by 2025. Serving as evidence, the bank reportedly has welcomed the youngest members of this generation this year. In Russia, one can become self-employed as young as 14, making it possible for the children of Gen Alpha to jumpstart their entrepreneurial endeavors early.
Gender wise, men are more likely to embrace self-employment, with a 60% preference among Gen Z and millennials. Even among the more mature Boomers, men outnumber women by 56% as they seek additional income and self-realization opportunities in their post-retirement life.
VTB Bank, optimistic about the future of self-employment, expects the number of independent entrepreneurs to reach 20 million by 2026. Denis Bortnikov, Deputy President and Chairman of VTB Bank, underscored the importance of self-employed individuals and their valuable contributions to entrepreneurship, expressing the bank's commitment to fostering their growth and development.
The demand for self-employed services is on the rise, as small and medium-sized businesses increasingly opt for self-employed professionals for their services. This year alone, the volume of payments for self-employed services skyrocketed by 2.5 times compared to the same period last year, reaching an impressive 2.3 billion rubles (36,000 transactions). The bank forecasts a similar increase by the end of 2025.
From traditional self-employed professionals such as tutors, IT specialists, and repairmen, to niche services like calligraphy teachers, wax model creators, and even dog armor makers, Russia's self-employed scene is a dynamic tapestry of diverse talents.
As the Gen Alpha workforce grows, the self-employment trend could further shape the Russian economy, leading to increased innovation, economic resilience, and flexible labor market dynamics. The digital-savvy Gen Alpha has the potential to bring new ideas, technologies, and business models to the forefront, solidifying Russia's position in the global market.
An entrepreneurial wave among Gen Y and Z in Russia is significantly reshaping the business landscape, with self-employed individuals leveraging technology and their personal-finance management skills to start their own enterprises. As Gen Alpha joins the workforce, they are expected to further fuel this trend, potentially bringing innovative ideas, new technologies, and unique business models to personal-finance and entrepreneurship sectors.
