Millennials are the future of entrepreneurialism
Though their presence has yet to be felt, except in rare circumstances, millennials are the entrepreneurs of the future. Currently, millennials seem to be plagued with a fear of taking risks because of a fear of failure.. This is compounded by student loan debt which can impact anyone’s life. This contributes to the fact millennials seek the regularity of a paycheck and the security of a regular job. Becoming an entrepreneur simply doesn’t offer them the security they seek.
The media, however, continues to describe the millionaire under thirty (30). And, to cite examples of young people like Mark Zuckerberg of Facebook and other young billionaires. Yet, millennials are on track to have the lowest rate for becoming entrepreneurs in recent times. Studies have shown that people under thirty (30), who are business owners has dropped by 65 percent since the 1980s. Shockingly, it’s believed millennials spend more time thinking about becoming entrepreneurs than most other age groups.
Currently, the people most likely to take the risk of starting a business seem to be forty (40) and over. This may be because, by that time in a person’s life, they would have accumulated a little bit and are looking for more. Some may have a working spouse capable of handling things until their new business becomes profitable. The tolerance for risk, of a person in their forties, may be greater. The real reasons have yet to be defined.
Millennials have trouble getting the financing to get started
A material reason, other than fear, overwhelming debt and a fear of taking risks, is that millennials are challenged to find money to get started. Most find that banks and angel investors fail to be a good source of capital for them. And, finding where to get money is a material part of becoming a successful entrepreneur. Millennial or not, only a small percentage of bank loans are approved. Angel investors tend to invest in sure bets. And, though millennials are working with cutting edge educations in business and technology, angel investors fear investing in unproven concepts. And very few millennials have enough savings, or enough rich relatives to get the money necessary to start.
What’s the answer for a millennial that want’s to take the plunge and learn how to start and stay in business?
Millennials already have the education and the mindset to start their own businesses. Those that have an idea for a good product and/or service simply need an answer to the question of how to get started. They should be advised as follows:
No matter if you graduating from a college, university, trade school or have no training to consider starting a business, get a job. To the extent possible get a job in the area you’re considering for starting a business.
Build the infrastructure for your business after work and on your days of. You don’t earn money during startup so, it’s best to develop your business on your free time.
When you’re ready to open for business, don’t assume you’ll earn money immediately. Don’t quit your job because you have an open business. Develop a plan for how you’ll transition from full time, to part time to ultimately no job at all. Determine the benchmarks you have to reach to make any of those transitions. Never transition to no job at all until the revenue from your business replaces your full time income on a consistent basis
Another group with poor representation in the world of entrepreneurs is women. Like millennials, their presence is far too small. Read our next post on women entrepreneurs maybe you’ll come up with an answer.