Most Millennials Want to be Small Business Owners
May 31st, 2017 @ 7:47 PM by Amber Nelson
Young Americans have a greater desire than past generations to have their own businesses, but are held back by a lack of funding and knowledge of resources, according to a new study.
America’s Small Business Development Centers (America’s SBDC) released a study of generational attitudes towards entrepreneurship and found that 54 percent of Millennials –those born between 1980 and 2000 – would quit their current job and start a business in the next six months if they had the right resources. And 49 percent want to create a business within the next three years.
“We are very encouraged that millennials are strongly inclined to begin the entrepreneurial journey,” said C.E. “Tee” Rowe, president of America’s SBDC. He added, “It is clear that the entrepreneurial spirit is not only alive and well in America, but that people are eager to find help to build their dream business.”
And these Millennials are not just blindly dreaming of being their own boss. Almost a third (30 percent) of them have already started a business. Compare that to only 19 percent of Baby Boomers – those born between 1946 and the mid-1960s) and 22 percent of Generation Xers – those born between the mid-1960s and 1980 who have started a business. Even more (38 percent) of Millennials have helped build a startup. More than a quarter have been successful enough with a small business to live entirely off its income.
The biggest barrier for many Millennials (45 percent) who want to have a small business is access to business funding. Women felt even more challenged by a lack of access to working capital, as 63 percent of Millennial females cited that as the largest hurdle.
Millennials also recognize a need for guidance before starting a business. The study found that 74 percent of these young Americans would start a business if they knew where to turn for advice and resources. A majority (51 percent) would like help developing a business plan and 45 percent would appreciate accounting or bookkeeping software training.
The study brings good news for an economy in need of continued job growth. With more and more young Americans hungry for entrepreneurship, the employment outlook could be brighter than expected.
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.