‘Millennipreneurs’ are M.I.A, studies showMarch 16, 2017 10:30 am Leave your thoughts
With consumer sentiment on the rise, the stock market shattering records and the current administration easing regulations, it's a great time to start a business. But by several indications, Americans' entrepreneurial spirit is in repose – at least in some circles.
This is particularly true among millennials, the largest generation in the U.S., outnumbering baby boomers by several million according to Census data. Based on analysis performed by business mentorship firm SCORE, a mere 4 percent of 18- to 35-year-olds are self-employed. Compare this to 5.3 percent of Generation Xers and nearly 7 percent of the boomer generation.
Business formation has dipped
Corroborating the apparent business creation dearth among millennials is Census data cited by Washington, D.C.-based think tank the Brookings Institution. It found that startups are down virtually across the board, Inc. Magazine reported, using Census data as the basis of their findings.
John Dearie, executive vice president for policy at the Financial Services Forum, told the business news publication Inc. Magazine that the long-term implications of the startup drought are substantial, potentially reversing the strides the economy has made since the recession.
"New businesses are disproportionately responsible for the innovation that drives productivity and economic growth, and they account for virtually all net new job creation," Dearie explained. "I would say, as a policy person, this is nothing short of a national emergency."
Government data suggests that the business world's lack of millennials – often described as "millennipreneurs" – runs deep. According to the U.S. Small Business Administration, only 2 percent of millennials operated their own company in 2014, a stark contrast from approximately 7.5 percent of Generation X and 8.3 percent of baby boomers.
"Two-thirds of millennials have thought about running a business."
Most millennials have considered business ownership
It's not as if millennials think operating their own business is a poor decision. To the contrary, nearly 80 percent of millennials in the SCORE survey said they considered entrepreneurs to be successful and almost two-thirds have at the very least thought about working for themselves.
That being said, fear of failure can sap initiative. Citing estimates from wire services firm Bloomberg, Forbes reported 80 percent of startups fold within a year-and-a-half of launching.
What separates the haves from the have-nots? According to a study performed by researchers from Gallup, the biggest difference is having marketable skills, or talents. In 2015, the polling outfit surveyed 2,500 entrepreneurs from all over the country. It found that among business owners with natural talents, they were three times more likely to build large companies, four times more likely to create jobs, four times more inclined see above-average returns on profit goals and five times more apt to supersede sales targets than they're less talented counterparts.
"You are likely to be most successful when working with your dominant natural talents," wrote Sangeeta Bharadwaj Badal, principal scientist at Gallup and the study's lead author. "Training and education will certainly help you achieve excellence in an entrepreneurial role, but success will come more easily if you have an inherent talent for the role. This means that identifying your entrepreneurial potential is vital."
Here at the Law Offices of Donald W. Hudspeth, we know where our talents lie: business law. But our services go above and beyond the lay of the legal land. We also provide pragmatic advice and strategic planning that can help business owners parlay their talents to their fullest potential. Call us for a free evaluation.
Categorised in: Starting a Business in Arizona
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