Millennials Are Looking to Start Businesses
More than any other generation, we find Millennials looking to start businesses, a recent report finds.
Many are eager to do so and would if they could line up the right partners to support their efforts, particularly in financing and capital, says the study, Generational Views of Entrepreneurship and Small Business, released by America’s Small Business Development Centers and the Center for Generational Kinetics.
Statistics Show Millennials Are Looking to Start Businesses
The study found that over half (54%) of millennials would quit their current employment and get into business for themselves within the next six months, provided they possessed the tools and resources they required. Contrast that figure with just 41% of the 1,000 adults in the U.S. who responded to the study.
Other results of the study show that more than one third of millennials (38%) have been a part of a new start-up company when it began, and 26% have lived entirely off the income from a business they started. In addition, about two-thirds (62%) have a dream business in mind that they want to run, with nearly half (49%) have designs on getting into business for themselves within the next three years.
The Rationale for Becoming a Business Owner
A primary reason for becoming a business owner and running a company for themselves is added job security—a drastic difference from the feelings of older generations. Sixty-one percent of millennials looking to start businesses believe that there’s more job security in owning their own business than in working for someone else. Compare that with Baby Boomers, 64% of whom think there’s greater job security in working for someone else instead of in owning their own business.
“There is an entrepreneurial hunger in America today especially amongst our youngest generations — who have vision, ideas, and creativity,” the authors write. They went on to say that these would-be entrepreneurs frequently are stymied in the more practical aspects of accessing capital and knowing how to acquire and run a small business. Having the right tools and resources helps to sustain businesses already in existence, and also motivates those considering a different path… “or biding their time until they have more clarity on what the future may hold.”
Finding Help is a Large Obstacle to Business Ownership
The study found that over 13 million millennials see the greatest barrier to owning their own business as not knowing where to turn for help. A full three-quarters (74%) of those surveyed
said they’d be encouraged to start a small business if they knew where to find help, as opposed to 61% of all those surveyed.
“Small business owners and would-be entrepreneurs want and need to know they have a place to turn for advice and support,” the authors remarked. “Whether this comes in the form of counseling on business formation and best practices for managing employees or training on accounting software matters less than the fact that such a support structure exists.”
Use a Local Business Advisor
One place to find help with getting into business is an experienced business transaction consultant.
Andrew Rogerson in Sacramento, California has been a business expert for more than 25 years. He’s a five-time successful business owner, a Certified Business Broker, and the author of four books on business and business ownership. Andrew helps business owners plan and execute buying or selling a business, and consults with business owners on how to make their ventures stronger to increase value.
Many Steps to Buying a Business
There are many steps to successfully buy a business with completing due diligence just one of those steps. Click this link if you would like a one page summary of Many Steps to Buying a Business.