The government lockdowns in the first months of the COVID-19 pandemic increased new business creation in Q3 2020 by 70% from the previous year, according to an Oberlo analysis of federal records.
Moreover, the record number of workers quitting their jobs — the so-called “Great Resignation” — contributed to the boost in entrepreneurial activity as employees sought professional satisfaction and security by starting their own businesses.
The Millennial Generation — people born between the early 1980s and mid-1990s — are leading the surge.
Why Are Millennials Driving the Growth of Entrepreneurial Activity?
The number of new entrepreneurs from the Baby Boomer and Gen X generations began declining in 2013. Still, the Millennial trendline of data published by the Ewing Marion Kauffman Foundation has been ticking steadily upward as the leading edge of that generation entered its 20s.
As technology veterans, Millennials are experts at drilling into online information, education and other resources that enable them to turn their passions and side hustles into businesses that satisfy their desire for a balanced lifestyle and security in an unstable world. Millennials also are often adept at using social media platforms to build a brand, target markets, advertise their products and services and influence customer behavior.
Writing in The Inspiring Journal, payroll-services strategist Sweta Sharma refers to the new generation of entrepreneurs as “startup-driven brains,” noting that they create businesses at much younger ages than their forbears: “They are ambitious, passionate and in the running of fulfilling their dream(s).”
What Does it Take to Become an Entrepreneur?
It requires courage as much as anything else. Small businesses make up 99.9% of all American companies, according to Investopedia, and employ 47% of the workforce. However, many do not survive in the long term.
According to government statistics, “21.5% of startups fail in the first year, 30% [of those that remain] in the second year, 50% in the fifth year, and 70% in their 10th year,” Investopedia reports.
So, while turning a passion for designing gaming apps or selling vintage couture online into a career sounds fun, Millennial entrepreneurs need a firm grasp of sound business practices to mitigate risk and keep the dream alive. Among those practices are skills such as:
- Communication: Knowing how to interact with employees, investors, customers and lenders requires expertise in tailoring messaging and delivery to diverse audiences.
- Selling know-how: Persuading markets that the brand mission, promise and vision meet their motivations is as essential, if not more so, as moving products or services.
- Focus: Emotional intelligence enables successful entrepreneurs to stay on course through setbacks and fluctuations in business cycles.
- Planning abilities: Setting goals and developing strategies to reach them helps point all operations in one direction and keeps them in sync.
- Learning capabilities: Innovating to stay ahead of the competitive curve requires constant attention to market changes and technological advances.
A Bachelor of Business Administration in General Business program curriculum that focuses on the fundamentals of management is an ideal way to gain those skills.
How Does a Bachelor’s Degree Help Entrepreneurs?
New entrepreneurs are generally risk-takers, notes Gaebler, but “another perspective is that they are actually risk-averse … and by mitigating risk, they increase their probability of success with their new ventures.”
A business administration degree, such as the one offered online by Southeastern Oklahoma State University, equips graduates with the expertise to mitigate the risks of starting a business through a curriculum that:
- Focuses on the entrepreneurial process from concept to launch
- Explores strategies for discovering opportunities, evaluating practical potential, developing a business plan and obtaining financing
- Builds critical business skills, including accounting, finance, statistics and economics
Beyond preparing graduates who have an entrepreneurial spirit, the program also equips graduates for careers as business managers, consultants and analysts. An advanced business degree can equip entrepreneurs with the knowledge to build and sustain start-up businesses in the modern world.
Learn more about Southeastern Oklahoma State University’s online Bachelor of Business Administration in General Business program.