The stock industry is dropping. Big companies are firing employees. Financial news is not exactly good. One often-ignored bright spot, however, is the 40 percent of Americans in their 20s to 40s starting their own companies. These small businesses are hugely essential in getting the economy back on track. The proof is here: Gen Y entrepreneurs approaching economic downturn as opportunity
The trend of Gen Y business owners
There are about 77 million “Gen Y” individuals in the U.S., according to estimates. Most Gen Y people were born in a certain time frame. It contains those between the mid-1970s and mid-1990s that were born. When compared to individuals over 30, there are twice as many individuals in this group that are unemployed. The unemployment statistics show this to be very clear. Some reports put the number of Gen Y business owners at 20 percent. Some researchers say that up to 40 percent of the generation want to or are preparing to start up their own businesses. The reasons are varied, but experts point to everything from a distrust of Wall Street and large companies to life experiences, such as watching parents be laid off during an economic downturn.
Slowly starting up companies
The age of business owns isn't tracked by the Small business administration which means it is hard to figure out what the ages of the typical small company owner is. Young business owners can join the “Our Time” organization. It believes that about 7,000 careers were created with 125 of its member businesses. This difference is specifically marked in rural areas and inner cities, where small businesses account for between 66 percent and 80 percent of all new careers created.
Getting all the cash figured out
There are not a lot of challenges in getting a small company started up for many young business owners. When it comes to beginning up, several people have a lot of reasons. The most common reasons involve student loans and start-up costs. The average start-up costs for business vary according to industry, but the average in 2006 was $10,000. Start-up costs can be done themselves for most small-business owners. Savings can be used to do this. Some entrepreneurship groups are lobbying congress to help young entrepreneurs by doing every little thing from forgiving student loans to helping with startup costs. Some entrepreneurs, however, aren't waiting and are instead turning to option funding sources such as Kickstarter to start their businesses.
Small Business Administration http://www.sba.gov/advocacy/7495/8420
Our Time http://www.ourtime.org/