Entrepreneurship is lower among Millennials than among prior
generations. In 2014, less than 2 percent of Millennials reported self-employment,
compared with 7.6 percent for Generation X and 8.3 percent
for Baby Boomers. These differences largely reflect the youth of Millennials
and the positive relationship between age and entrepreneurship among the
relatively young. However, growth with age in the proportion of each
generation reporting self-employment has been slower for Millennials than
for prior generations. At age 30, less than 4 percent of Millennials reported
self-employment in their primary job in the previous year, compared with
5.4 percent for Generation X and 6.7 percent for Baby Boomers. Trends
among the age groups Millennials will join in future years suggest that
entrepreneurship among Millennials will remain relatively low for decades.
Resource Category: Microbusiness
Undercapitalization and Women Entrepreneurs
One of the Council’s key areas of research is on women’s access to capital, a continual challenge for women entrepreneurs. Two of the NWBC’s FY2013 research projects demonstrate that accessing sufficient capital is a problem even for high-growth women-owned businesses. We have learned that women-owned firms face unique challenges because there are significant differences in undercapitalization that exist between men-owned and women-owned firms. First, Robb and Coleman concluded that startup capital is a key indicator of business success. This research confirmed that women start their business with nearly half the amount of capital as men, and further that women entrepreneurs raise substantially less equity and debt throughout the business lifecycle. In a second study, conducted by PQC Consulting, Inc, we learned, that all else equal, undercapitalization negatively impacts business survival.
Survey of Online Financing Companies
The DBO on Dec. 11, 2015, launched an inquiry into the so-called online, or alternative, lending sector. The inquiry’s objective is to determine whether market participants are fully complying with state lending and securities laws. It also aims to assess how the state’s regulatory regime is working, and should work, with respect to the industry.
The Tipping Point for Women’s Entrepreneurship
This Annual Report is a synthesis of the Council’s commitment to supporting women in business by producing best-in-class, actionable research on the most relevant issues facing aspiring and current women business owners and leaders, and identifying – through research and engagement – the unique barriers and challenges of women in pursuit of business.
Income of Veteran Business Owners
This study examines the financial success, measured by income and net worth, of households headed by military veterans. The study focuses on comparisons of income and net worth for three groups: (1) veterans and non-veteran households; (2) veterans households with and without small business, and (3) veteran and non-veteran small business households.
Microbusinesses, Gainful Jobs
Read FIELD’s new report Microbusinesses, Gainful Jobs. They found that workers value the flexibility, fulfillment, and skill-building opportunities offered by their microbusiness jobs and 63% of respondents made wages at or above President Obama’s proposed increase to the minimum wage. They also found out that there’s a 1-5 cost-benefit ratio for micro business development (for every $1 of grant money spent on microbusiness development, $5 is created in economic activity) and microbusinesses create opportunity for those that struggle the most.
Women’s Business Centers and their Performance
In collaboration with the SBA Office of Women’s Business Ownership, the Council worked with Carnegie Mellon University to review and analyze the effectiveness of Women’s Business Centers. Our hope was to gain an understanding of the Women’s Business Center network, what they need and how we can best support them. Download the report here and read our findings and recommendations for how best to support WBC’s.
2014 Small Business Credit Survey
Since 2010, the Federal Reserve has been monitoring small business credit conditions through regional surveys of business owners. In 2014, the Federal Reserve Banks of New York, Atlanta, Cleveland, and Philadelphia collaborated on a common small business credit survey to cover much of the eastern region of the U.S. The survey offers insight about the quality and pace of the sector’s recovery by providing evidence on credit conditions from the perspective of borrowers.
Hiring for Self-Employed and Microbusinesses
The Council commissioned research on sole proprietorships and the factors leading to these firms’ first hires. The purpose was to discover how to best support the employment growth of microbusinesses.
Access to Capital by Women-Owned Businesses
This report examines factors affecting access to capital for high growth women-owned or women-led firms. Prior research suggests that significant gender differences in firm employment, size, and growth rates persist (Bitler et al., 2001; Fairlie & Robb, 2009; Coleman & Robb, 2009). Data from the United States Census Bureau indicate that less than 30% of businesses are owned by women and only 12% of those firms employ anyone other than the business owner are herself. Only 2 percent have 10 or more employees. Census data indicate women-owned employer firms make up just 16% of employer firms and that only 2 percent of women-owned firms in the United States have revenues in excess of $1 million. (2007 Survey of Business).