Younger generations such as Millennials (born roughly between 1981 and 1996) tend to be less interested in being employees when compared to older generations. They would much rather be their own boss than clock in at a nine-to-five. There are many reasons why.
One is that this generation came of age during the Great Recession of the late 2000s and early 2010s. During this period, many people found it difficult to get full time employment in fields that interested them. As a result, a lot of young people chose entrepreneurship instead. At the same time, new technologies took over the world, not only making it possible for people to work from just about anywhere (as opposed to needing to be in an office) but technology also created many new opportunities at the same time.
In addition, Millennials tend to be very curious, very interested in making a difference, very committed to doing something they love, and very drawn towards doing things differently. These are all the building blocks of an entrepreneur.
However, entrepreneurship is difficult, and this generation has found many challenges in starting their own businesses.
One of the biggest hurdles that young entrepreneurs deal with is a lack of access to start-up capital. Many young people have significant student loan debt, for instance, and they may not have enough savings to risk on starting a new business. Many new businesses lose money for years before they become profitable, and this is difficult for a young person who does not have a lot of savings to fall back on.
Another challenge that young entrepreneurs face is a lack of role models. It is very helpful to have someone to look up to and learn from when you’re starting a business, but the types of businesses that many young people want to start are so different from what older generations have done that finding a role model is very tough.
For many young entrepreneurs, franchising provides a good solution. Franchising gives people the opportunity to be their own boss while still having help and guidance from an existing business. With a franchise, a young entrepreneur can learn from a more experienced businessperson, start-up costs tend to be lower, and there is often less risk than when starting a business from scratch. However, franchises still provide the flexibility and freedom that Millennials are looking for. That makes them an ideal choice for young entrepreneurs.
Krista Dinsmore from Sculpture Hospitality group, a service based franchise system in the restaurant and bar inventory management space has said that they have seen a big difference in the age of their new franchisees. Dinsmore comments, “Many of our new franchisees now are between the ages of 25 – 35. Our opportunity doesn’t require a brick and mortar location so it is a flexible career with a low start-up cost – under $50,000, both of which are attractive to this generation.”
Sculpture uses a proprietary software to help restaurants and bars manage and track their liquor and food inventory; typically saving restaurant owners up to 25% on those costs. “Our franchisees typically have been involved in the industry and realize this is a great service based franchise opportunity to quickly become a business owner themselves as opposed to continuing to work as an employee. We are happy to have this new eager and young generation of entrepreneurs working with us,” Dinsmore states.
Sculpture Hospitality has over 350 franchise partner worldwide.