Millennials and entrepreneurship

Complete this sentence: If I had the necessary tools and resources, I would …

If your answer is “start my own business,” you’re not alone, especially if you are a millennial. According to a recent study by America’s Small Business Development Centers (America’s SBDC) and the Center for Generational Kinetics, millennials have a strong entrepreneurial inclination, and their motivations for starting a business challenge preconceived notions.

Reportedly, one third of Americans (34 percent), have worked in a small business in the past and nearly a quarter (24 percent) of both Millennials and Gen X own or have owned a small business.

“The study found that the entrepreneurial spirit is alive and well with 41 percent of Americans saying they would quit their job and start a business in the next 6 months if they had the tools and resources they needed. This number is higher for Millennials with more than half of those surveyed stating that they would be willing to take the entrepreneurial leap in the next 6 months with the right tools and resources.

“All generations surveyed lived through the great recession, yet seemingly this hasn't dampened entrepreneurial willingness for most. The study cites that 62 percent of Americans have a dream business in mind that they would love to start, and close to half (49 percent) of millennials, intend to start their own business in the next three years.”

What motivates these would-be entrepreneurs? Money, money, money, money. “Wealth creation was the number one rated catalyst to start a small business with 47 percent of Americans listing the potential to make money as what would motivate those most to start their own business. The appeal of being your own boss is also a strong factor, with 40 percent of Americans listing it as their motivation. While there is a perception that millennials are, most interested in their work being fun, the survey reveals that 62 percent would rather have a business that makes a lot of money than a business that is a lot of fun.”

The biggest obstacle? Where is the money? “Money was cited as the most limiting factor in entrepreneurship with 55 percent of Americans rating access to money as the most difficult aspect of starting a business. When broken down by gender, women feel more challenged by this barrier with 63 percent saying access to money is a barrier to starting a business.”

The lack of knowledge and small business savvy is another roadblock. Over half of Americans (61 percent), say they would be encouraged to start a small business if they knew where to go for help. More than 13 million Millennials cite not knowing where to go for help to start or run a business as the number one reason that keeps them from starting their own business.

The study also found that among millennials:

• 59 percent of say that with the right idea and resources, they would start a business within the next year
• 61 percent believe that the best job security comes from owning your own business
• 45 percent say access to capital is the biggest barrier to starting a business
• 51 percent would absolutely want help with a business development plan
• 45 percent would absolutely use training for accounting or bookkeeping software

So, if you’re thinking of starting your own business, perhaps it could be one that addresses some of the needs in this list. Whatever your idea, the U.S. Small Business Administration is a good resource to help you on your journey. You can begin by reviewing the 10 Steps to Starting a Business.

Go forth and prosper.