Could the young people of today be the country’s best and brightest small-business owners of tomorrow? A newly released survey suggests as much, an encouraging sign given the low rate of business creation among millennials.
Roughly 40 percent of older Generation Z members – specifically those in middle school up through 12th grade – intends to start a business or invent a product that could be a game changer when they become adults, according to a recent survey conducted by Gallup.
Organizations like the Small Business Administration and the National Federation of Independent Businesses encourage entrepreneurship, understanding what it provides for the U.S. economy. Financial institutions like the SBA provide small business loans to help companies get up and running. And according to the survey, the nation’s schools are doing their fair share in this effort, as nearly 45 percent of students acknowledged having learned about how to start and run a business in some of their classes.
Are ‘millennipreneurs’ missing in action?
If the survey is truly reflective of young people’s sentiment, it would represent a bit of a shift from the millennial mindset. Dubbed “millennipreneurs,” 18- to 35-year-olds aren’t launching businesses to the extent that other generations are. Based upon a survey by SCORE, just 4 percent of millennials are self-employed. This compares to 7 percent of baby boomers and 5.3 percent of Generation X.
John Dearie, executive vice president for policy at the Financial Services Forum, told Inc. that the low rate of business creation among millennials “is nothing short of a national emergency.”
“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.
Funding is a concern for aspiring business owners.62 percent of Millennials considered starting business
It’s not as if millennials haven’t thought about becoming their own boss. Almost two-thirds – 62 percent – said they’d given it some deep thought, the SCORE survey revealed, and 55 percent believed their generation was more entrepreneurial than their predecessors, even though the numbers suggest otherwise.
Jim Clifton, Gallup chairman, and CEO, said Americans today ought to champion young people’s business-owning ambitions by encouraging them to intern so they can gain from hands-on experience. Only 5 percent of students in the Gallup poll said they were volunteering with a company.
“This is arguably the single biggest national failure of our leadership,” Clifton said. “Not Washington’s, not the public school systems’ – but yours and mine.”
Some believe that they don’t have the financial capability to start a business. This is a concern aired by millennials in the SCORE and other polls. At Growth Capital, we have the financial programs and products that can turn entrepreneurial aspirations into reality. Register for our mailing list to learn more.