When it comes to growing their small businesses millennials are willing to go the whole way, according to a new study, whether that means taking risks or taking on more debt to make their long term goals a reality.
The new study put out by Wells Fargo, found similarities and differences between millennials who are small business owners and their older entrepreneurial counterparts. Finding that they put a lot of thought into their business and contrary to what some may believe are not short sighted when it comes to their goals.
“Our research shows millennial small business owners to be thoughtful about credit, and their attitudes toward taking on debt have likely been shaped by the Great Recession. At the same time, it is encouraging to see them investing in their businesses and looking at entrepreneurship as a way to secure their future,” said Stevens. “We want to make sure that as they grow their businesses, they have the financial resources and access to credit that can help them succeed financially.”
Taking charge of the future
When asked why they started their small businesses, millennials like their older counterparts cited wanting more flexibility and being their own own boss as being two reasons, along with wanting more control over their future and where it was going.
Yet, for millennials, passion trumps just everything else, with 59% indicating that they were motivated by passion to begin their business, when 51% of older small business owners indicated the same. What were there other reasons? For 55% taking on a challenge and a desire to grow were the sparks, while just 43% of older small business owners shared the same inspiration.
While some may think that millennials are serial entrepreneurs, according to this study that is not the case. They are actually focused on the long term, seeing them as a way to invest in their future with many already concerned about the next generation and what they will be leaving them-80% say that they are looking to grow their business over the years, and maybe even turning the reins over to their kids down the line. This is the case even though 59% still do not have children.
Hobbys become full time careers
Millennials more than likely started their business as a hobby, but 70% are now work full-time in their business. When it comes to the rate at which they grow their business the generations take a detour, with 79% of older business owners indicating that they are happy to keep it small, but only 51% of millennials are looking to stay small. And 41% want to not only make enough to be comfortable, they are looking to expand as much as possible.
The Wells Fargo Millennial Small Business Owner Study was conducted between March 24 and April 13, 2016. During the poll they spoke with 1,005 U.S. small business owners falling into the different generations-500 people who can be classified as millennials (ages 19 to 35) and 500 who are 36 years old and older.