Millennials Ready to Become Business Owners
Millennials -- more than any other generation -- are itching to hang out their own shingle, and would do so if they had right partners to support their efforts -- especially with capital, so says the study, Generational Views of Entrepreneurship and Small Business, released by America's Small Business Development Centers and the Center for Generational Kinetics.
More than half (54%) of millennials would quit their job and start a business in the next six months if they had the tools and resources they need, compared to 41 percent of all of the 1,011 U.S. adults surveyed for the study.
Indeed, more than a third (38%) of millennials have been a part of a new start-up company when it first began and 26% have lived entirely off the income from a business they started. Nearly two-thirds (62%) have a dream business in mind that they would love to start, and close to half (49%) intend to start their own business in the next three years.
One of the main reasons: more job security, an about-face from the sentiment of older generations. A majority (61%) of millennials say there is more job security in owning their own business than in working for someone else. On the other hand, 64% of baby boomers think there is greater job security in working for someone else than 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.
“Where these would-be entrepreneurs often get hung up is in the more practical aspects of accessing capital and knowing how to start and run a small business. The right tools and resources will not only help sustain the businesses that have already been started, but also inspire those dreaming about a different path or biding their time until they have more clarity on what the future may hold.”
More than 13 million millennials believe the biggest barrier is not knowing where to go for help with starting or running a business, but three-fourths (74%) of those surveyed say they would be encouraged to start a small business if they knew where to go for help. This is compared to 61% of all respondents 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 write. “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.”
Support also needs to come in the form of money, the authors write: “If we want to enable our very willing entrepreneurs to take the leap to business ownership we must make the needed capital available to them.”
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