The Entrepreneurial Generation

In my various talks about Everything Bad Is Good For You I'm often asked for evidence that all the Sleeper Curve skills that I discuss in the book are having a real-world impact on the web/gamer generation. One of the things I often say in response to this question is an anecdotal one: "Has there ever been a time when 20-somethings have had such a profound impact on the economy? Think Google, MySpace, YouTube, FaceBook, etc." Now two studies are backing up that general impression, outlined in this Inc. cover story on "The Entrepreneurial Generation":

No wonder that a recent study by The Global Entrepreneurship Monitor shows that 18- to 24-year-olds in the United States are starting businesses at a faster rate than 35- to 44-year-olds. The college campus is now a fertile breeding ground for company builders. "Forty percent or more of students who come into our undergraduate entrepreneurship program as freshmen already have a business," says Jeff Cornwall, the Massey Chair in Entrepreneurship at Belmont University in Nashville. "It's a whole new world."... Fifty-nine percent of Gen Y company owners described themselves as serial entrepreneurs, compared to just 33 percent of baby boomers. Maybe that has something to do with their attitudes about risk: 72 percent said they actually enjoy taking risks, while only 53 percent of older entrepreneurs were risk junkies.

This generation also happens to be the most politically active and progressive since the 1970s. A pretty sweet combo.

Comments

[rick gregory]

"Fifty-nine percent of Gen Y company owners described themselves as serial entrepreneurs, compared to just 33 percent of baby boomers."

First off, how many of them ARE serial entrepreneurs (have actually started 2 or more companies serially) vs the number who say they're serial entrepreneurs because the *intend* to start multiple companies?

Also, these numbers don't seem surprising for people entering an entrepreneur program but the numbers for both generations seem very high for the general population. Claiming that 1/3 of the general population born from 1945 to 1960 are not only entrepreneurs, but serial ones at that seems... high. And, if these stats are reflective of the people entering the program, then they are biased. I mean, is it surprising that many freshmen entering an entrepreneur program already have businesses? Isn't this, in fact, exactly the kind of person who would be attracted to such a program?

"Maybe that has something to do with their attitudes about risk: 72 percent said they actually enjoy taking risks, while only 53 percent of older entrepreneurs were risk junkies."

That's reflective of the stage of life though. Far more 22 year olds than 42 year olds are risk takers regardless of the generation - the percentages might vary from generation to generation, but the proportion likely does not. Youth naturally takes risks whereas most people from 30-50 have more to lose and become more risk averse as a result.

What will be interesting is to see if this percentage falls off as today's 22 year old matures into tomorrow's 42 year old or whether we are seeing an actual shift with this generation.

[Pam Maccabee]

Hope you don't mind my riding into your mind-space on the back of this article on youth and risk, esp. entrepreneurial risk. (Thank goodness for these young people. They may yet save the world from my generation's mistakes.) Anyway, I'm actually responding to MIND WIDE OPEN which I've recommended to everyone I have met since I read the book over two years ago. I consider it a "must read" for anyone interested in our minds. (I see that EMERGENCE...is another book I'll want to read.)

To business, however. Have you become aware of any brain-bio researchers who are using fMRI's, etc., to study the brain when repressed memories are actually surfacing and also when individuals are contemplating topics such as war and concepts such as infinity (two topics which can trigger a great deal of emotion). If you wish to know why I ask I will, with delight, explain. But knowing you have limited time,I'm forcing myself to be somewhat brief so I'll just say I'm working on a book describing experiences involving the practice of intentionally prolonged periods of emotional discharge, esp. crying and laughing. It's refreshing, empowering, and informative and it might be a physiological process which we, as a species, ignore at our peril since, among other things, it tends to increase our capacity to feel empathy for others as well as for ourselves. That is, it can-- when "practiced" under certain conditions. I know this from personal experience. Growing up I had no empathy and didn't miss its absence. It lead to the usual undesirable consequences. Now,empathy and other deep feelings enrich my life.

If you don't have time to respond to this email I certainly understand.

Warmly,
Pam Maccabee

[Ryan]

I think you're right in saying this is an effect of the Sleeper Curve. In addition--perhaps even more so--I would say the Long Tail effect certainly adds to this. The fact that people in their 20's can start a business (often through technology) without having a degree, without having to work their way through the ranks certainly adds to the ability to start a business. Because we are enabled to do so, it is easier to take on the task of starting a business.

To attempt to explain the generational gap, it is perhaps even less risky for this generation to do the same thing as previous ones. If you look at Google, when they started, they *made* nothing and thus costed them nothing (didn't have to take out any debt). Thirty years ago you just about had to open a physical business and sell physical goods to in fact be in business. Because of this you don't have to take on as much capital risk to attempt starting a business. People in their 20's are more willing to take on the risk of starting a business (which could always fail) but are in fact, in most cases, taking on less capital risk which leads to their eagerness to take on such "risk".

[David]

Thanks for the link. Cornwall is great and his blog is usually full of great information.

[Brian Backman]

I just started 'Everything Bad is Good for You' and am really enjoying it. I teach high school English, so I have a great respect for the written word. I also realize, however, that in order to understand and reach my students, I need to know the new ways they are reading and interacting. I'm looking forward to integrating technology more into my curriculum next year. I think I have a few things to teach to my students about reading and writing, but I also think they have a few things to teach me. Your book is a great reminder of that. Thanks.