February 16, 2012

Young people are staring into a future that's bleaker than their parents' future was. They have less help from employers and the government toward their retirement.

This generation came of age during the recession. Seeing their parents lose investments and homes teaches them to tread cautiously in an economy that promised so much to the generation before them.

So, what do they do? Let's look at the silver lining. The economic downturn has forced Gen Y to become entrepreneurs. Their move to become more self-reliant is happening just as some cool technology is emerging to assist them, and the barrier-to-entry is lower.

Young people are creating jobs rather than competing for them.

And we need those jobs. America will need to create a net 21 million new jobs by 2020 in order to return to full employment, according to a recent report by the McKinsley Global Institute.

The average member of Generation Y needs to save more than $2 million in order to sustain their lifestyle when their careers are over. As of now, the Gen Y unemployment rate is 17.6 percent as of this summer, so they aren’t likely to build on those savings accounts any time soon.

Organizations are cropping up to help mentor and support young business owners, such as the Young Entrepreneur Council. Gen Y is using entrepreneurship to obtain financial security, raise the wealth needed for an adequate retirement and make an immediate impact on society.

But, what about the next generation? How will the rising entrepreneurs of today impact the next wave of young professionals who enter into the workforce?

Soon, entrepreneurial education may be part of the core curriculum, along with math and social studies. Serial entrepreneur Anthony Delmedico called on Congress, President Barack Obama and Secretary of Education Arne Duncan to mandate entrepreneurship education for all public schools in the United States. Delmedico is also launching the E2 Petition online February 17 to support the (Learn to Earn Act.)

In the U.K., the government has given added incentive to visiting students to become entrepreneurs by altering the country’s student visa policy. Today, non-citizen students are permitted to work in the country for up to two years after graduation.

After that, they may only stay if they have a job offer from a company accredited by the U.K. Border Agency with a certain salary level. Under its new policy, young entrepreneurs will be permitted to stay in the U.K. if they have £50,000 to invest in their business.

Even for young professionals entering the workforce without entrepreneurial aspirations, it will pay to have an entrepreneurial skill set. As global competition for high-skill career paths continues to grow, employees will brand themselves to differentiate from the competition, just as if they were creating their own company.

Our recent economic turmoil has inadvertently opened a door to innovation and opportunities.

Dan Schawbel, recognized as a “personal branding guru” by The New York Times, is the managing partner of Millennial Branding. 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.

Photo credit: impulsemagazine.net

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