Why young adults don’t brave entrepreneurship the same way as their predecessors.
As surprising as it may sound to some, the amount of millennial entrepreneurs, ages from 20 -34, has downturned from previous years. A recent report by Kauffman Foundation shows a 9.7% difference among young entrepreneurs between the years 1996 and 2014. In 1996, 34.3% of entrepreneurs were categorized within this age bracket, while only 24.7% in 2014.
For full report visit: http://www.kauffman.org/multimedia/infographics/2015/infographic-millennial-entrepreneurs-and-the-state-of-entrepreneurship
So why the lack of interest in entrepreneurship?
As the report shows, student debt and unemployment rates is on the rise among this age group. Without the financial stability needed for any business start-up, it’s apparent to why millennials may lack confidence and interest for building their own businesses. However, a report from the International Franchise Association, states the number of franchises in the US is set to increase throughout this year.
Why are millennials choosing franchises over business start-ups?
Could the uncertainties of investing in a business from scratch be drawing back young entrepreneurs? With any business start-up, there are multiple factors and costs business ownersneed to run a successful business, the branding, marketing, accounting, and legal administration, are just a few things they’ll need to take into consideration. In comparison to owning a franchise, a business franchise takes care of the business foundations and provides their owners brand reputation, structure processes and administrative support. This gives franchise owners more time to focus their efforts to build networks and nurture leads to generate more income.
For those interested in taking their first step towards their professional freedom, consider taking our management personality test to find out if you have what it takes to be your own boss.