Unlocking the Potential of the Millennial Entrepreneur: Traits, Challenges, and Opportunities

Kelly Marciniw, CPHR, geMBA writes on entrepreneurship and intrapreneurship from both the employees’ and employers’ perspective. As the Founder and CEO of BrightGo Solutions in Vancouver, Canada,  she guides immigrant entrepreneurs, global companies, and international HR leaders, who are overwhelmed when establishing their business and human resources in their new market, to navigate the culture, compliance, and context of doing business in Canada. Kelly is a thriving millennial who is on the board of the Society for Canadian Women in Science and Technology and has traveled to 40+ countries with many more on her to-do list. Connect with Kelly on LinkedIn.

One definition of entrepreneurship–owning a controlling stake in a business–has millennials at historic lows compared to other generations at the same age. An entrepreneurial mindset seems like a natural fit with the globally connected, passionate, and always learning generation. But, like any demographic of people, you’ll have some portion of the group that are entrepreneurial–finding new solutions and selling it to others.

Millenials are no different…or are they? Here are three things you should know about the millennial entrepreneur right of the bat.

Overlapping Values and Traits

According to SparkVision’s High-Achieving Millennials research, some of the top values millennials seek in a workplace include: accountability, opportunity for growth, clear organizational vision, feedback, and flexibility. These are things as an entrepreneur you’d have plenty of, or at least be in control of making happen, so if you can’t join a company that matches your values, build one.

On the flip side, common entrepreneurial traits include: determination and passion (not just a paycheck), high confidence in self, being a strong networker/connector, having a lifelong learning desire and being adaptable to new challenges and people. These are also common traits of many millennials with their can-do attitudes and ambitions.

Accessing Creative Financing

No…not the creative financing kind that will get the IRS or CRA knocking; but the kind that let’s entrepreneurs fund their dream business.

A major challenge for millennials is the financial challenges they face compared to past generations. Increased amounts of student debt and reduced levels of home ownership both of impair entrepreneurial dreams, as individuals have less ability to borrow and finance their business. Many millennials also take less risks since they don’t have a large cushion to rely on while building a new business. However, with time, those financial restraints will lessen, allowing millennial entrepreneurs to bloom.

If waiting to pay off debt first isn’t their first choice, then there are the new forms of financing, facilitated by technology. Examples such as crowdfunding, micro loans and the ability to sell products through platforms that collect payment before needing to make the product (a highly coveted type of negative working capital business).

Structured Entrepreneurship

One type of entrepreneurial venture is seeing a massive rebirth due to millennials. Franchises! These lower-risk alternatives to starting a brand new venture can typically receive more bank financing, given their financial forecast reliability. They also provide some structure for those without deep experience in management and growing a business. According to statistics from the Canadian Franchise Association, over the past several years, roughly 30% of the people showing interest in buying franchises are part of the millennial demographic, while only making up about 22% of the general population.

The other entrepreneurial venture dominated by millennials is the “side-gig”–a full time job plus another source of income. Whether it is selling jewelry on Etsy, completing virtual admin services on UpWork, picking up fares with Lyft, or logging on for a shift with CloudAgents, the flexible ability to make some extra money on their own terms is key. This desire to have some additional hustle will serve them well when they decide to start their own independent business (possibly while still working for an employer).

The millennial entrepreneur, like other millennials, is both similar to other generations and also distinct. As a generation, there are some common challenges like student debt and insecure employment, and some new opportunities like side-gigs and crowdfunding helping to shape new kinds of entrepreneurs. Yet, the millennial entrepreneur will bloom: helping others with their solutions and making a few bucks while they do.