November 30, 2011

Make no mistake that Gen-Y is the entrepreneurial generation, but we’ve also been called “Generational Jobless” by The Wall Street Journal. The unemployment rate for Gen-Y is nearly double that of older demographics, which is why some young people are pursuing careers as business owners instead of corporate employees. Young people want freedom, flexibility and to have an impact on society in one form or another. Although a corporate job can be a great training ground for young people to learn new skills, make connections and gain credibility in their field, Gen-Y would rather take a risk than submit another resume. In fact, a new survey by the Kauffman Foundation reports that 54 percent of the nation’s millennials either want to start a business, or have already started one.

This generation is enthusiastic about entrepreneurship and more and more schools, such as Stanford, are teaching the topic in classrooms. The government should be happy because small businesses create jobs for the economy. Entrepreneurship is one of the keys to getting this economy back on track and high growth startups can offset enterprise hiring freezes. Also, startups can help grow entire industries that didn’t exist before. For instance, Facebook’s ecosystem has helped Zynga become billion dollar company in less than two years.

There are still many challenges for young entrepreneurs, such as getting bank loans, venture capital money, and the lack of knowledge required to run a small business. This is why only 8 percent of them actually have a business right now. The economy has led them to the entrepreneurship path but has also been an obstacle. Only a small percentage of young people ever get funding because venture capitalists are looking for a product that already has a fan base and revenue attached to it. No one wants to invest in an unknown and a product that hasn’t been selling. Clearly the government is going to have to find new ways to support these companies if we ever want to revive the economy.

Many young entrepreneurs have relied on the Internet to build their businesses. The problem is that just having a website isn’t going to guarantee a successful business since everyone can have one. Blogs and social network profiles may help you when you start from scratch, but it’s the persistence, networking and creative ideas that will make your business really take off. Young people need to find mentors who can help them at different phases of entrepreneurship. There are also more free resources now to help young people build companies, including blogs written by entrepreneurs. The Internet has given us access to people and information like never before.

Do you think Gen-Y’s entrepreneurial spirit can revive the economy? Well, they are certainly willing to take the plunge and what’s the worst that can happen anyways? They fail and then learn from their mistakes to become better entrepreneurs later. Gen-Y truly has a unique opportunity now to make a difference but the government and successful business owners should start supporting them more. Only then will this generation have a chance of having a future!

Dan Schawbel, recognized as a “personal branding guru” by The New York Times, is the Managing Partner of Millennial Branding, LLC, a full-service personal branding agency. Dan is the author of Me 2.0: 4 Steps to Building Your Future, the founder of the Personal Branding Blog, and publisher of Personal Branding Magazine. He has worked with companies such as Google, Time Warner, Symantec, IBM, EMC, and CitiGroup.

Join the conversation ( 10 )

• Christian Brown 2 months ago

  

  I don't see why Gen Y can't revive the economy. Now that the situation is massive enough to for everyone to take note, we definitely understand that there is a problem that we must solve. I'm a Gen-Y guy as well as a business owner, and when I worked in corporate America I felt like a drone on a daily basis. I now feel empowered to not only change my future, but that of all of my employees as well. I take pride in what I do, except when I have to explain to my Grandmother's neighbors and friends why I don't have "A Real Job" anymore lol.

• Stirling Morris 2 months ago

  

  With a lack of business experience while young, I don't think Gen Y can revive the economy. But, I do think with their innovative spirit, they can maintain it.

• Trucked Up Marketing 2 months ago

  

  "54 percent of the nation’s millennials either want to start a business, or have already started one." Do you know the corresponding stats for Gen X or the Baby Boomers?
  
  Great article!

• Sidnee Peck 2 months ago

  

  From personal experience as an instructor at Arizona State, I can say that more and more of my students are serious about starting something to make an impact...and thankfully, our University has been putting programs in place, as a Kauffman Campus, for the past 5 or so years so that we are prepared to handle this interest and demand. While hard work and determination are essential, providing this generation with a road map, some tools, and connections to mentors or other networks, I strongly believe that we will see many more startup attempts, and as a result, many more successful businesses.
  Not all will be (or should be) VC fundable, but all kinds of businesses, big and small, help our economy and our outlook on the future. I very much believe we are moving in the right direction and that Gen Y is full steam ahead to make a big impact on our economy.

  • Dan Schawbel 2 months ago

    

    Sidnee, that's great to hear. It's important for our economic revival.

• Sergey Sagan 2 months ago

  

  That is great news, but perhaps reliance on venture capital and bank money is a bad idea. They burne you with unneeded weight and stress. Perhaps Gen-Y should be thinking about small innovations from their garage. This gives them true freedom if they create something worthwhile. Internet marketing is different, it can seem like more freedom but the knowledge required to achieve success is significant, couple that with the disinformation from those trying to make a quick buck and any person can want to throw up their hands, persistence and hard work are key in anything worthwhile.
  
  http://www.ibacklinkpro.com

  • Dan Schawbel 2 months ago

    

    You can't rely on funding. You need to bootstrap until you provide yourself.

• Boris Fowler 2 months ago

  

  I find it hard to believe that more people do not want these things. It seems like these are things people would want, though I understand that not everyone is entrepreneurially motivated.
  
  I think a great thing to attract young people to a company is to make it feel like a startup or give them an entrepreneurial feel.
  
  We've had some entrepreneurial motivated posts the last few days. http://www.caycon.com/blog/2011/11/8-ways-starting-a-business-helps-your-job-search/

  • Dan Schawbel 2 months ago

    

    Boris, I agree that an entrepreneurial environment works for some people, but not all. Some people need instruction.

• Drewry News Network 2 months ago

  

  T'is da season to feel entrepreneurially joyful, and put your best foot forward in thinking positive that you can succeed as an entrepreneur :-)
  
  
  http://www.DrewryNewsNetwork.com