-- endangered species: the young entrepreneur...

[spopepro]

Yep. God Bless University bureaucrat salaries and student loans. It's hard to take a chance when you owe a lender 100k at 22. Glad this issue is getting some exposure.

I'm a public school administrator and a university lecturer and I can't figure out where all the money goes. And I even have access to and meetings about the books at the school district. :/

Well, I do know, kind of. Pensions and long term health care is eating massive amounts of budget. It is also why I have never entertained striking out on any of my personal ideas, and why I have turned down 3 different start-up offers. With a full disclaimer that I'm a unashamed and registered socialist, the difficulties of long term medical, disability, retirement, and so on make going it alone a seriously dangerous proposition.

[Rich Beaudoin]

My dad is an entreprenuer (so was my father-in-law) and I believe I would have done the same except my wife is extremely risk averse (her folks had some huge boom/bust cycles). I have tried multiple times to get her on-board without success.
We have also had two medical issues that would have bankrupted us - health care costs are overwhelming if self employed with kids. If my spouse had a job with insurance, I would have started something already. Or if I had known what I wanted to do before marriage/before 30...when I could live in a car

[Tristan]

My first thought was the lack of a US safety net (ie: Government health care) caused potential entrepreneurs to choose 'safe' jobs.

My second thought was that the current state of corporate greed and willingness to layoff workers at the promise of short-term profits might mean you've got just as much (or more) control over your future by being self employed.

I chose to become self-employed at 25 and 8 years later I can really see both sides of the fence. I'm not sure which side has the greener grass but I love my job.

[jclay]

I read the comments. As the kids say, so much face palm.

I'm not under 30, but close. And I own a substantial stake in a small business.

The things these stupid old men are ranting about - immigration, Obama, regulations - please. My biggest fear is the power of the status quo that they represent.

This old man, nearing 60, isn't interested in the status quo, recognizes the need for regulation of business, would reinstate Glass Steagall in about 2 seconds flat and thinks that it's unbelievable that the population can't seem to recognize the personal, social, economic and business benefits (entrepreneurship) of a national health care system.

Being stuck in conservative-ville, afraid of change, didn't build the future that we live in and a wider cross section of us now enjoy. And it ain't just the old farts, I know plenty of educated 20 to 30 something's that don't have a clue in this arena. They had to have a liberal arts basic education but seemed to have learned nothing from it.

[JoB]

I agree. Hard for me to understand how taking the health care burden off potential business starters would not spur the opening of small businesses. Somewhat surprised the Dems haven't sold it to the Repubs this way although I would not be surprised if it's Dem donors afraid of the competition that this would breed...

This old man, nearing 60, isn't interested in the status quo, recognizes the need for regulation of business, would reinstate Glass Steagall in about 2 seconds flat and thinks that it's unbelievable that the population can't seem to recognize the personal, social, economic and business benefits (entrepreneurship) of a national health care system.

Being stuck in conservative-ville, afraid of change, didn't build the future that we live in and a wider cross section of us now enjoy. And it ain't just the old farts, I know plenty of educated 20 to 30 something's that don't have a clue in this arena. They had to have a liberal arts basic education but seemed to have learned nothing from it.

[jclay]

I agree. Hard for me to understand how taking the health care burden off potential business starters would not spur the opening of small businesses. Somewhat surprised the Dems haven't sold it to the Repubs this way although I would not be surprised if it's Dem donors afraid of the competition that this would breed...

The dem party has largely sold out to big corp interests, pretty much like the R party. I alternately laugh, cry or curse when folks call the D party "liberal". On certain social issues, sure, but not much elsewhere.

[ron l edmiston]

My reply was not meant as a dig at you. Hell, I went to Star Bucks today too. It's great.

It's just the reality that is the free market. Small buisnesses struggle against the Star Bucks and Walmarts. Even the service industry is being taken over by the Home Depots and Price clubs.

The world is changing and in America it's mostly for the good.


---------

i did not relate as a dig --- "liked with respect.."
other's views and opinions create subjective and objective learning..

star-bucks created by/as a one store entrepreneur small business investment and has grown with many failures and setbacks.., only for h schultz to regroup and set-sail over & over.. (** onward, by h schultz) --- great reading..

[MarkC]

I'm sure I'm not the only one that feels this way.

You are right, there are many individuals who trap themselves this way. Across all levels of experience and education. The fear of "what if something goes wrong" is far more powerful for most people than the motivator "what if something goes right"?

The mistake people make is thinking that the primary risk is potential for failure. The actual risk is an often misplaced belief that the current path is "safe" and that you should stay there because the risk to a different path is somehow drastically different.

My experience there are two factors preventing success:

#1 issue that prevents people from making a change is inertia. It is always far easier to stay pat and rationalize why that is the best choice today than to pick up and make the change.

#2 is failure to have relevant skills. If you can't do something that is in demand, and do it well, then your problem isn't a safety net or opportunity, its that you don't offer something of value in exchange for an opportunity. Or to be more draconian, a pay check. Fix the skills problem and opportunities will present themselves.

-Mark

p.s. My use of the term "you" above is generic and not directed at any individual. Given that this discussion is a sensitive topic.

[Philster]

Does this mean there are simply fewer entrepreneurs now than before? Just fewer born?

I guess I just meant that we are talking about a very small segment of the population. All sorts of factors can come into play. It could just be that parents are living longer and not passing things along until children are older. You can attribute the shift to tougher economic conditions, but, fact is, business formation is often associated with a really bad economic climate. If you have no prospects, you're not risking anything.

To start and own a business, you have to live it 24 hours a day. There is absolutely nothing wrong with deciding that you'd like to let someone else do that for you.

[steve garro]

Who would want to be tied to a business in your 20's?

That's time for adventure.

- Garro.

[ron l edmiston]

-- steve g.., the best tune yet -- just like kenny g..

ronnie with a arizona smile..

[Matthew Lewis]

#2 is failure to have relevant skills. If you can't do something that is in demand, and do it well, then your problem isn't a safety net or opportunity, its that you don't offer something of value in exchange for an opportunity. Or to be more draconian, a pay check. Fix the skills problem and opportunities will present themselves.

In the context of entrepreneurial outlook though, one must have valuable skills which can be used independently. I don't think anyone is disputing that nurse anesthetists have valuable skills which can be exchanged for a very solid paycheck, but I would imagine that it would be difficult for one to strike out on his or her own.

[MarkC]

The point was that your skills and work ethic are your safety net. Not a watchful nanny that catches you if you fall.

Earned skills give you flexibility to try for new accomplishments. It's not magic. It may not be easy but it's not some super secret special sauce why some succeed and others don't.

[devlin]

My second thought was that the current state of corporate greed and willingness to layoff workers at the promise of short-term profits might mean you've got just as much (or more) control over your future by being self employed.

This strikes a chord for me. I think most kids these days are brainwashed into believing they need a deg. to have a job. It seems that way in Australia. Also we are hearing news stories of so much government red tape for small business in this country. At the moment the whole working for a corporation that has no morals or honor for their employees has got me to a point that I hate the whole idea of working for a big company. The last 5 jobs I have had literally pulled from under my feet because the companies were downsizing etc. I'm starting to think I'm a bad luck omen. Being my own boss would be my ideal situation right now.

[randonneur]

My first thought was the lack of a US safety net (ie: Government health care) caused potential entrepreneurs to choose 'safe' jobs.

If this were true, it would stand to reason that countries with stronger safety nets would be bastions of entrepreneurship, but that's not really the case, is it? My sense, although I have no data to back it up, is that the US still outpaces Canada or European countries in terms of per-capita entrepreneurs. (oh, here some quick searching brings up something to back it up: Daily chart: Just do it | The Economist )

I'd be curious as to the true causes of the decline in entrepreneurship.

[s_curran]

I'm trying to be part of the 3.6 percent, on the side of my normal job which pays for the loans I took to get there. I have trouble imagining that the side business will ever support the loans. Unfortunately, I think a lot of my fellow graduates will try this, but I think most won't make it past the point we are at now. Hopefully we will.

[Honus]

I think the rate of decline has to do with several issues. Finding seed money to start a traditional business has become more difficult, especially if you're a recent graduate with debt and little work experience. Finding angel investors is tough. Many individuals are also foregoing starting a company in favor of of running smaller projects via Kickstarter or Indiegogo in order to get their feet wet without giving up their day job. There's also sites like Tindie, Quirky and Etsy that allow you to get into manufacturing, sourcing and selling on a much smaller scale- you can start a very small side business and see where it takes you without a lot of risk. I think it's easier to start a business today than it ever has been in the past. The trick is staying in business and making a decent living wage- it's a crapload of work.

I have a lot of friends with kids that are heading off to college and we often talk about whether it's worth the cost. My response is always remember that your resume is read from the bottom up. It's great to have a degree but it's never a guarantee that you will be employable. Having knowledge is one thing and having done something productive with that knowledge is something else. I tell people to do lots of projects and document them thoroughly- this is great preparation whether you want to start your own business or you just want to get hired right out of school.

Good entrepreneurs tend to be "T" shaped people- they have a great depth of knowledge in one subject but a wide breadth of interest in many areas.

[spopepro]

If this were true, it would stand to reason that countries with stronger safety nets would be bastions of entrepreneurship, but that's not really the case, is it? My sense, although I have no data to back it up, is that the US still outpaces Canada or European countries in terms of per-capita entrepreneurs. (oh, here some quick searching brings up something to back it up: Daily chart: Just do it | The Economist ) I'd be curious as to the true causes of the decline in entrepreneurship.

It's tough to tease out these things definitively. The safety net is there in the UK, for example, but they then put up some obnoxious other obstacles. Some of it also boils down to what you are calling an entrepreneur. My wife started and owns a UK LLP not for profit, and an a sole proprietorship in the US. Both are arts related and neither make money. The day job pays the benefits. She owns two businesses, we file those taxes, but most wouldn't really call her an entrepreneur.

And to that end, all my friends from the EU/UK who have taken advantage of the safety net have done so to make art--theatre, music, visual art, etc. They busk, tour, hit the festivals, sometimes make money and sometimes don't. They wouldn't call themselves entrepreneurs, but they are their own boss, they are selling their own product, and maybe most importantly, they are having adventures.

[GrantM]

Who would want to be tied to a business in your 20's?

That's time for adventure.

I think there is some truth to that. It's a much more complicated work environment than 20 or 30 years ago.
It takes more time to develop the knowledge and skills that will make future entrepreneurs successful.
Just because those under 30 aren't there yet doesn't mean that later, once school debt is paid off, and
they have some experience under their belts, it doesn't preclude them from becoming entrepreneurial
with the goal of being your own boss.

-g

[Tristan]

Of course there is no one factor in issues like this and it's very complicated. New Zealand has a very good safety net, combined with limited liability for company directors, and the government says that ~14% of adults are classified as entrepreneurs.

I read an article recently about a country (whose name I forgot but I recall it being a Middle-East country) who actively reduced red-tape and saw a massive spike in small business registrations.