Millenials and Entrepreneurship

Here is Alexis Ohanian, co-founder of Reddit, being interviewed about Millennials, opportunities for start ups, and the sudden burgeoning of entrepreneurship among young people.  This blog has covered before the situation young people are in coping with the present bad economy. Ohanian point, that the lack of economic opportunities means that there's no opportunity cost for entrepreneurship, and that this is the silver lining in our economic cloud is an interesting one. He also points out that the barriers for entry into business have never been lower because of increased access to consumers and open source software.

Michigan Future, Inc. put out a report several years ago with the purpose of attracting knowledge workers to Detroit and thereby encouraging the revitalization of downtown Detroit. Their "knowledge workers" are Ohanian's audience as well - young, very bright, creative, willing to work hard and take risks. In the past they've gone where the jobs are and taken their energy and drive with them, reducing the fortunes of smaller cities already on a downward spiral and enriching larger cities with, arguably, enough knowledge capital. Now, however, with good jobs hard to find nationally, they have incentive to stay where they are and build their own opportunities.

The less fortunate part of this is that knowledge workers - people who can create with "a laptop and an internet connection" are only a small subset of the general population. Most would be small business entrepreneurs still need some capital to get started. Even if you have the knowledge to build a parts washer to spotlessly clean engine liners, you can't do it without investment capital. While some small businesses can be run from home, manufacturing plants, auto garages, medical care centers, and organic farms, to name but a few, cannot, and those are the businesses who will hire workers who are not knowledge workers but still need employment. The economy won't get better until there are jobs available to the average worker, not just the specialty one.

It is, however, a blessing for very bright people who don't want to move away from their communities to find their livelihoods. And, eventually, many knowledge workers do generate jobs from their risk taking. Reddit only has 28 employees, but Ohanian has other projects that fund average people looking for a break.  It's not an overall solution to the nation's economic problems, but for those people he's helped get exposure and funds it's been life changing. We need to see more of this virtuous cycle of economic activity.

Thinking About Hiring? Be Sure Not to Discount the Millennials

When a business begins to grow, it may mean that it's time to begin hiring people. Sure, your partner or your children may have been able to pick up some slack here and there, but a part-time or full-time employee can be much more helpful, considering the dedication they must have to the business. But how do you select the right employee from the candidate pool? The obvious answer is to interview the candidates and consider each of them individually, but what if your own thoughts about people--specifically, those in regard to age--are getting in the way of your selection? Your biases could be holding your company back, so you better get past some stereotypes that are floating around largely thanks to media.

Some of the most ridiculous stereotypes out there right now surround millennials, people born between the years 1982 and 2000. Considered to be lazy, apathetic, and prone to mooching, the millennials are getting a bad rap for reasons that escape many of those that are included in this demographic. Like baby boomers before them, the news media has put millennials under the microscope and dissected them bit by bit, typically reporting findings that are negative. For instance, a number of articles have highlighted the fact that some millennials are still living with their parents. Though this is true, wasn't it true for previous generations like Generation X? People fall on tough times and with the massive costs associated with college--and the social expectation to enroll--countless teenagers have been groomed into educated, indebted twentysomethings.

An infographic explaining some of the intricacies of Generation Y. | Courtesy of Flowtown

Combine this with the economic downturn and, suddenly, many of these newly graduated college students couldn't find a job, let along afford an apartment. When the media started asking why, they began examining and blaming the personality traits of those who had received the short end of the stick. Of course they found negativity and apathy and angst: Wouldn't you be upset if you were told that college would get you a great job and those expectations fell flat? So, now there is an educated class, eager to work toward and for their passions, but many people have been convinced that they are lazy good-for-nothings, further complicating the debts they cannot pay. These stereotypes are false--many millennials possess entrepreneurial spirits and tend to be marketing savvy. They know that quality of product matters and that success takes hard work--their life experiences so far have largely convinced them of this latter understanding. Moral of the story is this: Do not underestimate millennials when considering them for a position. In fact, don't underestimate any applicant based on your own assumptions--it could mean the difference between your business succeeding or failing.