Millennials are valuing job security over the possible prospect of being an entrepreneur because of the current job clement. Companies feel safe asking for not only degrees but multiple years of experience for some entry level positions.
Millennials get a lot of flak today. For the most part they get pinned as lazy. The truth is that they live in a world that actively works against them. The cost of living has gone up and median income has gone down. In 1980, the median income was $35,845. Between 2009-2013 the median income is $33,883. Millennials are making less than their parents did at the same age. With the highly successful world of apps the perception is that millennials are becoming entrepreneurs off phone games and getting rich.
In a study by Small Business Administration, less than 2% of millennials were self-employed. Past generations like Gen X had 7.6% and 8.3% for Baby Boomers. In a different study, young people 20-34 are accounted for only 22.7% of entrepreneurs in 2013 and in 1996 that number was 34.8%.
According to an Economic Innovation Group study, millennials are risk averse when compared to past generations. Millennials are valuing job security over the possible prospect of being an entrepreneur because of the current job clement. Companies feel safe asking for not only degrees but multiple years of experience for some entry level positions. Making the prospect of holding a job very attractive because they can remember how hard it was to get the first one. On top of that, millennials carry a lot of debt – a direct correlation to the necessity of job security.
Millennials are carrying more debt than their predecessors. The average debt a student will graduate with in 2016 is $37,172. Up 6% from last year. Since 2012 71% of student graduated with student loan debt. For entrepreneurs, you’re going to start off netting a negative and paychecks won’t be study.
Choosing an office job offers a sense of security that we already talked about. It also offers a chance at creating savings for the future. Market Watch cited that millennials have less than $1,000 in liquid savings. Entrepreneurs require a savings to start their business. They need the savings just to live day-to-day to support themselves while their business starts to take off.
The simple fact is that millennials just can’t afford to become an entrepreneur without extensive outside help. They spend their time in higher education trying to further their future. The harsh reality is that they will more often than not end up in a secure office position with decent benefits that they then can slowly chip away at their debt.
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