Emerging Trends in Entrepreneurship

Have you been watching the emerging trends in the world of entrepreneurship? The demographics making up the American workforce are changing dramatically. Millennials, particularly those in their early- to mid-20s, are now the largest age cohort, surpassing Baby Boomers for the first time.

As Millennials (born between 1981 and 1997) continue to enter and settle in the workforce, and Baby Boomers reach age 65 (about 10,000 per day for the next decade), many of the “traditional” thoughts and beliefs about business will shift. In addition, entrepreneurs representing a wider array of ethnic groups and cultural values are rapidly growing.

To gain some perspective on the entrepreneurial shift and its effect on the landscape of business, consider these stats (summarized from the Kauffman Foundation’s Entrepreneurship Policy Digest):

  • Entrepreneurship is declining among Millennials. In 1996, entrepreneurs represented 34% of the 20-34 year olds but by 2013, only represented 23%.
  • This decline is in spite of the fact that Millennials are the most exposed generation to education on entrepreneurship. In 1985, less than 300 college courses could be found on the topic. By 2010, there were more than 5,000.
  • The number of entrepreneurs aged 55 to 64 continue to rise – from 14% in 1996 to 23% in 2013.
  • Baby Boomers are two times more likely to create a high-tech start up than a Millennial.
  • Hispanics entering entrepreneurial roles have more than doubled, representing 10% of the population in 1996 and 22% in 2014.
  • Many Hispanics are drawn to entrepreneurship to strengthen their financial situation (belief that they can make more on their own than working for someone else) and family values (ability to spend more time with family members).
  • Women-owned businesses, particularly African American women-owned businesses, continue to outpace the national average for the fastest growing group of entrepreneurs.

Do you fall into one of these demographics? Come back for our series on these trends. We’ll be looking at what makes each group unique in the entrepreneurial landscape and listing resources to support entrepreneurial growth.