There are a variety of factors that are contributing to the growing trend of entrepreneurship amongst millennials. Here are some of the factors at play:
One of the worst job markets in modern history
Millennials are facing the worst job market of any generation in the past 50 years. According to The Atlantic, in early 2014, 8.2% of millennials (25-32 years old) in the United States were unemployed.
This rate of unemployment tops what early boomers faced in the 1970’s (7.3%). Unemployment is worse for young people throughout Europe; following the 2008 financial crisis youth unemployment topped 50% in Spain and Greece.
Average youth unemployment in the Eurozone is 23.5%. Facing such difficult job prospects it shouldn’t be surprising that so many young people are turning to entrepreneurship.
Reduced costs of starting a business
These days starting a business is a dream that can come true. The internet is making it easier than ever for millennials to pursue a business. Millennials are using crowd funding platforms like Kickstarter and Indiegogo to raise money for things that they find interesting. Starting an ecommerce business does not require the same coding/technical ability of just a few years ago.
Shopify, etsy and other online platforms require very little technical ability to use. Nowadays there are more options than ever for millennials to start a business.
Do not want to be part of large corporations
Millennials are rejecting the corporate jobs which their parents once embraced. A recent survey by Bentley College found that only 13% of young respondents were interested in pursuing the corporate ladder to become CEOs or presidents of large corporations.
This contrasts with 67% who said they were interested in starting their own business. Millennials are rejecting standard 9-5 jobs in favor of the flexibility that comes with being an entrepreneur.
Contributing to this trend is the increase in venture capital money available for young entrepreneurs. Many business schools are marketing themselves more by how much venture capital funding graduates raise and less by how well they place graduates into corporate jobs.
More millennials are interested in starting businesses that serve some humanitarian mission. The millennials are not willing to choose between profits and doing something fulfilling. This generation does not want to work for a company that it perceives as doing evil.
With these trends in action it would seem that entrepreneurship will continue to influence how young people enter and view the working world.