As of 2018, there were 30.2 million small businesses operating in the U.S. And on average Americans start around 400,000 businesses every year. But there is one group which is not doing well when it comes to starting a business, young entrepreneurs.
The number has gone down so much, The Wall Street Journal labeled them an “endangered species.” This is a serious problem because older entrepreneurs are also retiring or shutting their business down. With small businesses responsible for the employment of almost half or 47.5% of the workforce, the long-term impact is concerning.
A new infographic by Lance Surety Bond Associates, titled, “7 Reasons Young Entrepreneurs are an ‘Endangered Species’” looks at some of the reasons.
The report starts with a sobering statistic about the decline of young entrepreneurs. Between 1989 and 2017, the number of young adults with stakes in private companies declined from 10.1% to 4%. This is the reason The Wall Street Journal attached the ‘endangered species’ label.Why Are There Fewer Young Entrepreneurs?
The report lists seven reasons for fewer young entrepreneurs today