Do Baby Boomers are characterized as generation of America's entrepreneurs? Does the number and success of American startup companies decreases as the baby boomers retire?
A recent study by the Ewing Marion Kauffman Foundation said not necessarily.
many economists are concerned about the future of small business as the baby boomers begin to leave the workforce. The generation of baby boomers is defined as those born between 1946 and 1964, and is known to have catalysed the revolution in information technology. Their cohort includes an extremely large and disproportionate labor represents the total number of small business owners in the United States.
The fear is that Millennials (those born between 1981 and 1997) will not be able to reflect the growth of small businesses in their predecessors, and the number of start-ups will thus reduce their chances of success in the coming decades.
Outlook Small Business
financially, the first 3 2014 quarters saw more risk capital investment in a single year since 01. and new startups are valued at higher amounts than ever. These are two positive indicators for future commercial development.
However, the rate of new small businesses survive have been declining since early 190. Kauffman study reports if "entrepreneurship peaked in 06, [it] fell by 31 percent to its nadir in 2010; in 2012, it was still 27 percent below the recent peak. "
The right age to start a small company
overall, the age is correlated with the probability of starting a business. This means that one of the indicators of future growth of the small business is the size of the generational cohort and age. the Kauffman Foundation found that first time entrepreneurs are likely to be around 40 and series entrepreneurs in their 50s.
If the age is a predictor of entrepreneurship, the will of the millennium continues their own startups and small businesses in the coming decades? This generation is a product of the information revolution, and experienced a near-ubiquitous exposure to entrepreneurship. Millennials are more educated than any generation, and 20-24 years are now the largest cohort size in the United States, the movement of baby boomers for the first time.
However, Millennials are struggling with unprecedented amounts of college debt, only compounded by their entry into the workforce during the Great Recession. prohibitive amounts of debt raised concerns about their willingness to take the risk of starting a small business.
Conclusion
growth of small businesses are contradictory indicators which some take as the mark of the end of an era and other consider the beginning of a renaissance.
However, it is clear that the future actions of aging baby boomers and the emerging Millennials will be the largest demographic forces shaping the American economy.
See these related articles to learn more about the economy of small businesses
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growth prospects of employment for small businesses in 2015
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Top 10 US for the growth of SMEs
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do you think the Millennials will be as entrepreneurial as the generation of baby boomers? Leave a comment or question below!
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