Television shows like Shark Tank will make you realize just how entrepreneurial millennials are. More than 90% of participants in the show are from this generation of young people who were born from 1977 to 1995. In fact, Millennial-owned businesses now outnumber Boomer small businesses, which makes us want to believe that Millennials are the most entrepreneurial generation yet.
Remember that Millennials came of age at a time when Rockstar businessmen such as Mark Zuckerberg (himself a Millennial) and Alexis Ohanian are making their names. In 2008, during the global economic recession, Millennials are in the middle of finding employment. Most of them are fresh out of college. Their dreams of financial independence were spoilt by the recession. That had a huge impact on the way they see employment as opposed to entrepreneurship.
The Boom of Franchise Businesses
And then, franchise businesses boomed. And it’s not just expensive franchise businesses such as McDonald’s. Millennials started franchising food carts and service-oriented businesses. Those in the health sector began looking into how they can start their own physical therapy business with the help of a franchisor. Service-oriented businesses in the health sector increased in number because of the convenience that they offer.
Millennials understand that as much as they are entrepreneurs, they are consumers, too. Their generation makes up much of the consumers today. With purchasing power and a need to keep up with trends, Millennials consume more than any other generation. So, essentially, Millennials are marketing to Millennials. They know who they are selling products and services to. This pushed them to become better at marketing their businesses.
Why They Want to Be Entrepreneurs
Why Millennials want to be entrepreneurs has a lot to do with the things they grew up with. Seeing the recession in 2008 pushed them to look for better opportunities. They believe that entrepreneurship will allow them to live a more balanced life. For Millennials, work-life balance is important.
A survey found that 66% of Millennials want to start their own business. About 61% of those surveyed believe that there is more job security in owning a business than working for someone else. In comparison, 64% of Baby Boomers believe that working for someone else provides more security.
The number is even higher in younger Millennials, the ones barely out of college and starting their lives now in the corporate world. These younger Millennials are starting their own businesses the moment they stepped out of a university. Their tech-savviness is allowing them to work for an employer and start their own small business on the side. Many of them work as freelancers, too.
Baby Boomers are always concerned about security because they were born during the time of war. They have seen how something that’s happening thousands of miles away from them can have an impact on their lives. They want financial security and savings in the bank. But Millennials are a different breed. They are risk-takers and they are more adventurous.
They are perfectly fine stepping out of their comfort zones. Many of them believe that much like Zuckerberg, they can create things and pave a revolution, too. Experts suggest that Millennials are comfortable with not owning anything. They joined the workforce during a recession. As much as they are go-getters, they also understand how tough the competition is. To separate themselves from the rest of the pack, they allow themselves to take on jobs they are not comfortable with. That makes them different and a cut above the rest.
What This Means for the Economy
A generation of risk-takers, creative geniuses, and resourceful entrepreneurs is good for the economy, right? Small businesses are the backbone of the economy. These businesses provide employment for local people. They also use local resources and suppliers, which further boosts the economy.
Settling down is far ahead in the vocabulary of Millennials. This is the same generation that starts a family when they’re older. It’s great for the economy that a whole generation is seeking financial refuge outside of the norms. The more adventurous entrepreneurs are, the better opportunities they will find. And the more opportunities that open up to Millennials, the better the state of the economy will be for everyone.
It is fitting for a generation that is known for its multi-faceted skills to be the most entrepreneurial generation yet. While the data is not clear on how many Millennials actually went on to create and start a business, what is true is that they understand their role in the ever-changing landscape of employment and entrepreneurship. Furthermore, they know that the way to a more balanced life is by starting their own business