Around 16% of small businesses are owned by people 35 years and under and 63% of workers in their 20s who do not own one hope to do so in the future. Entrepreneurship is an option during an economic downturn when it is difficult to find a job in a very competitive labor market. Self-employment through a business venture is also an opportunity for young people to take control of their lives. Freedom, doing something that you love and promoting creativity are just some of the advantages of entrepreneurship as a career path.
The Startup Culture Is Attractive
While the failure to land a job is a contributing factor to start a business, it is also the allure of the startup culture that’s driving young graduates to strike out on their own. Many students want to eventually start their own business because of the financial incentives. While the average business owner salary is not great, there are many other owners that make much more money than a regular salary. In addition, at this stage, they are unmarried, have no kids or even a mortgage. Plus, there are still parents and relatives around who may be able to provide economic assistance. It is a great time to get started while students have less financial overhead.
It is also an opportunity to do something that you love and are passionate about. A business that thrives can bring in an enormous amount of income that could even realistically pay off education debts faster. In other words, you have potential to make lots of money provided that your business scheme is viable and that you studied your industry thoroughly.
Barriers And Support To Business
Like any other endeavor, starting your own business is fraught with challenges the most common of which is to find the capital to fund it. Fortunately, the business sector has changed tremendously in the last decades presenting entrepreneurs with different funding opportunities. Start-ups can avail of crowdfunding to finance a venture or a business idea and some banks offer loans for small and medium enterprises. You can also look for a partner not only to increase funding but also to reduce risks and share costs.
The good news is there is also support for would-be entrepreneurs such as entrepreneurship programs designed to connect businesses with others located abroad and exchanges. For example, People-to-People Exchanges hook up US businesses with entrepreneurs from around the world to expand their networks. The Small Business Administration (SBA) promotes technological innovation using privately-raised capital. Entrepreneurs could sign up for one of the popular SBA loan programs or apply for small business grants. Or, simply use the services and expert advice that the SBA has to offer.
The bottom line is, there is support for young entrepreneurs out there. The entrepreneurship culture is thriving from students to young professionals who are starting their own businesses after graduation. If you are headed in this direction, financial support exists from crowdfunding to SME bank loans. Even if you can’t fund a business on your own, you can find the capital necessary to get started. Entrepreneurship not only benefits the graduate in terms of flexible time and financial freedom but also the economy by creating jobs, promoting innovation and improving standards of living.