Reflections on Generational Small Business Ownership

The Millennial generation – born 1982 or later – has struggled and often failed to find jobs post recession (source: Pew Research Center). So, to a large degree, Millennials more than their parents generation will need to chart their own course when it comes to earning a living supporting themselves without any parental support. And, for many of them, that will mean starting a business (or even more than one small business).

We were fortunate enough to speak directly with many Millennial small business owners in the most recent Guardian Life Index to examine the differences in what matters most to them compared to older generations who currently own small businesses. We found that Millennials are 50 percent more likely to plan on expanding their business. Perhaps even more interesting, Millennials reported they are 100 percent more likely than prior generations to say they plan to sell their business.

As Millennials are projected to have up to 12 jobs in their lifetime (source: Forrester blog), they are much more likely to start multiple businesses in their lifetime. And they are 120 percent more likely to have only been a business owner WITHOUT other workplace experience. This could be both a blessing and a curse. We can see that this generation writes its own rules about decision-making, sourcing advice and tools of the trade from professional advisors (e.g., collaborative with others via social media) who support them in sustaining and growing their business.

Yet I wonder if they are consigned to repeat the mistakes of the past because they are socially connected to their generational peers and trust them the most? Will this create blind spots for Millennials, relegating them to take a longer amount of time to succeed, or a shorter amount of time to fail, vs. the generations that came before them? I believe it is too early to say because it might take only one or two disruptive technological shifts to enable success or guarantee failure for these young small business owners. I, for one, am excited to watch and see how this will unfold in the months and years ahead.