Millennials are on their way to be the least entrepreneurial generation in the history! Read this article and discover the biggest myth of the millennial entrepreneur!
The co-founder of the Economic Innovation Group – John Lettieri announced that the Millennials are on their way to be the least entrepreneurial generation in the history. The share of individuals under 30 who own a business has drastically fallen by 65% since the 80s.
This information goes against the usual media representation of the American start-up – an application designed in an office with dedicated lanes for 22-year-old business owners. Businesses such as American Express have announced that the Millennials could be the most entrepreneurial generation ever, while the editor-in-chief of Millennial Magazine – Britt Hysen declared that 60% of the millennials consider themselves natural and gifted entrepreneurs and even 90% recognize entrepreneurship as a state of mind.
Young people may lead the country and are capable of being entrepreneurs. However, when it comes to the more falsifiable activities of the entrepreneurship, the older and more experienced generations are doing much better.
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According to the Kauffman Foundation, the average age for a successful and productive startup-founder is around 40 years old. In other words, the people in their 40s are the peak age for entrepreneurship and for business formation. The truth is that the typical American business owner is not that kid from the block with a hoodie, it is his mom or dad. As a matter of fact, the only age group with growing entrepreneurial activity in the last couple of years are people between age 55 and 65.
Why hasn’t millennial entrepreneurship kept pace with past generations and media expectations?
The reasons for this are less risk-taking and more debt. The number of student debtors is 89% between 2004 and 2014. During this time, the average debt that was held by the student debtors grew up by 77%.
Entrepreneurship is a dangerous endeavor that doesn’t guarantee stability. Also, there is an evidence that young people’s willingness for risk-taking has significantly declined at the same time their student debt has grown. Around 40% of the 25 to 34-year old Americans claimed that a fear of failure kept them from building a company and developing a business in 2014.
However, there is always a cause for optimism, for example, Bill Gates and Zuckerberg. They should be our motivators and a reason why we should root for the millennials.
— Lauri Novak (@LauriNovakPhoto) 29 de mayo de 2017