Millennials aren’t the type of people who sit back, wait for someone else to take control, and hope for the best. Nope. This generation is all about taking control of their own destiny.
With approximately 28 million small businesses in the United States, it’s easy to see that the American dream is alive and well.
Millennials, in particular, are interested in owning a small business. There are 75 million millennials in the United States and members of this generation have a “be my own boss” mentality.
According to America’s SBDC for the Center for Generational Kinetics, “61% of millennials say there is more job security in owning your own business than in working for someone else.”
While this statistic is interesting enough on its own, consider this: 64 percent of Baby Boomers believe there is more security in working for someone else. Quite the difference in approach.
If that’s not enough to open your eyes, here are a few additional millennial statistics shared by America’s SBDC:
- 38 percent of millennials have been part of a start-up from the beginning
- 26 percent of millennials have lived entirely off the income earned from a business they own
- 49 percent of millennials intend to launch a company within the next three years
- 62 percent of millennials have a dream business in mind
In other words, it doesn’t appear that there will be a lull in entrepreneurship in America. As long as millennials are steering the boat – which should be the case for the foreseeable future – the entrepreneurship spirit will remain strong.
The Challenges of Starting a Business
Millennials, just the same as all entrepreneurs, face a variety of challenges when starting a business. However, this generation isn’t about to back down and wait for something to change. These individuals are the “take the bull by the horns” type.
According to a 2017 article published by USA Today, only 20 percent of new businesses survive past the first year. Despite this, millennials take great pride in preparing for challenges like starting a small business and are often willing to take the risk. Some challenges that millennials readily take on often include:
- Hiring top talent. Some millennials hire other millennials, as they’re more likely to share the same vision for the future. Others, however, realize the importance of bringing the older generation into their company, as these professionals have more real world experience and knowledge.
- Spreading brand awareness in a crowded market. Overall, it’s good for the country to experience a growth in the number of new small businesses. Conversely, it poses a challenge for entrepreneurs, as they’re faced with mounting competition.
- Acquiring funding. Many millennials struggle with finding the money they need to get their business off the ground with the average cost to start a business, which has been reported at approximately $30,000.
- Finding a way to give back. According to a poll conducted by Fortune, “Millennials are more likely than generation X’ers and baby boomers to say it matters if American businesses give back to society.” It’s one thing to say you want to give back, but another thing to find a way to do so. This can be a big challenge for millennial business owners.
A Solution to Every Problem
As millennial entrepreneurs strive to kick off their own ventures, they sometimes need additional funding solutions – besides their own money or an investor’s, for example.
A personal loan is one convenient and quick way for a millennial to secure the money necessary to start or grow a business. There are many benefits of this financial approach, including but not limited to:
- Ability to use the funds for a variety of purposes (from advertising to buying equipment)
- Fixed monthly payment, making it easier to budget from month to month
- Competitive interest rate and terms
- No collateral necessary
There may also be reasons to consider a personal loan vs. a small business loan. Whatever the obstacle, quick access to funding can be important part of the millennial small business owner’s journey.