Millennials Driving Rebound In Entrepreneurship
Written by Ken Gaebler
Global Entrepreneurship Monitor report shows that nearly one in five U.S. Millennials is involved in starting or running a business.
There's no denying the fact that entrepreneurship took a hit during the recession. But a recent report from the Global Entrepreneurship Monitor shows that the entrepreneurial spirit is back on track--and it's being driven by Millennials who are interested in starting a company.
Entrepreneurship On the Rise
Compiled with data from 73 economies and more than 200,000 global respondents, the Global Entrepreneurship Monitor study found that the rate of entrepreneurship rose to 14 percent in 2014 across all age groups in the U.S.--nearly double the 7.6 percent that was reported in 2010 at the height of the recession.
The data included a large number of early-stage startups launched by individuals who are simultaneously working other jobs to pay the bills. Although the numbers represented the broadest category of entrepreneurs, the increase in activity demonstrates that more people are starting businesses based on interest rather than necessity.
"It's very motivating, and the rate of failure is also slightly declining," said Donna Kelley, entrepreneurship professor at Babson College, a co-sponsor of the study. "There may have been lingering hesitation, and some people had been wanting to hang on to their jobs. Banks also are more likely to lend, and there are more support systems that may not have been there during the recession."
Technology and the Millennial Factor
Millennials between the ages of 25 and 34 are playing an important role in stimulating entrepreneurial activity in the U.S. In 2014, 18 percent of Millennials said they were involved in either starting or running a new business, up from 15 percent in 2013.
High levels of entrepreneurship among MIllennials may be partially attributable to the use of technology. With innovative technologies reducing barriers to entry, younger generations of entrepreneurs have a slight edge over older, less tech-savvy peers.
"People can start businesses on their own and be a part of the value chain that doesn't require you to hire employees," Kelley said. "You can open a retail store on your own today thanks to technology."
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