There may be a lot of factors leading to the lack of entrepreneurs among the Millennial generation. Overwhelming debt is among the top of these causes- in the last decade alone borrowing for education has increased by 89%, while the average balance for student loans has grown by 77%. In short, most Millennials are too scared to take on more risk than they already have.
As a result of already high student loan debts, homeownership has decreased by 10% among the Millennial generation between ages 25-34. This has translated to a lack of equity against which to borrow in order to start a business. Add that to a fear of failure that same age group reported as their main reason not to start a business, and you have a whole generation trying to play it safe.
There is promising news, though. Millennials’ fear of failure has reportedly dropped in recent years, and as the economy slowly climbs out of its sustained downturn that’s great news for anyone who wants to start a business. There are also many advantages to those starting businesses that weren’t around in previous generations. Today’s entrepreneurs have access to social media, smartphones, crowdfunding, and mobile on-demand platforms ready to distribute their ideas across the globe.
Most Millennials report that they would like to make a positive difference in the world, with 57% saying they want company wide volunteer opportunities. When you combine that with the fact 87% of Millennials say the success of companies should be measured by more than their bottom line, it’s easy to see where the old ways of doing things will not work for this generation. It’s up to Millennials to get out of the cubicle and make their own business opportunities. Learn more about Millennial advantages to entrepreneurship from this infographic!