Ready for some good news on the entrepreneurship front? According to a report released last Thursday by the Kauffman Foundation and Young Invincibles, 54 percent of Americans aged 18 to 34 — the generation commonly known as the millennials — want to start their own businesses. Okay, there’s just one thing. Of this 54 percent, only 8 percent of them own businesses now, and only 11 percent intend to start businesses within the next year. And what about those other 38 percent — the potential young entrepreneurs who want to start their own businesses but who don’t plan to do so anytime soon? Why have they delayed their dreams of entrepreneurship?
It’s the economy.
Or, more specifically, because of a variety of barriers to entry that these young people are feeling. These barriers include: the inability to access capital needed to get a business going, lack of knowledge needed to run a small business, concerns with overcoming current debt burdens, and few mentors from whom they can learn.
Back to the good news again. When the economy does one day turn around, there will be a huge pent up demand to start up new businesses. This demand will likely fuel a huge economic surge — lifting the U.S. economy to new heights.
We’ve just got to get out of our current economic funk first.