Millennials Decoded, the innovative new study from Cargo, an agency that helps big brands market to small businesses, and neuromarketing firm BRANDthro, explains that Generation Y, also known as Millennials, are now the fastest-growing segment of Small Business Owners (SBOs).
Why Gen-Y? The study cites four likely reasons why Millennial SBOs (MSBOs) are jumping into entrepreneurship in record numbers.
First, many in this generation grew up in the 90s and early 00s. They saw the financial crash through the eyes of a child, including the hurt and financial trouble it caused for their parents. With a long-running suspicion of big industry, they are less keen than generations before to help make rich people richer.
Second, they grew up in the age of technology, watching young tech wizards create billion-dollar companies, often with little more than a computer and an idea.
Third, new ways of funding, like GoFundMe and Kickstarter, have made it more financially feasible for Millennials to get the money they need to get their businesses started.
And finally, the Millennial personality seems to be pre-set to “leadership” mode. They’re not sitting around waiting for it to happen. They are foregoing starting their own families and buying homes for now to instead make their way in the business world.
Spending Power Generation
There are more Millennials on the planet than any other generation, and they have a lot of money to spend. How much exactly? How about $2.8 trillion. And MSBOs alone spend about $150 billion. That accounts for 25 percent of all spending from all U.S. SBOs.
It doesn’t stop there. In the next decade, they are set to inherit $32 trillion from their parents. How are they likely to spend the newfound fortunes? Not on small-batch kombucha, that’s for sure. Instead, they’re taking the reins and starting their own gigs. In fact, 60 percent of Millennials identify as entrepreneurs.
There’s no denying that MSBOs are a powerhouse in terms of sheer numbers and soon-to-be spending power. And if big brands want to keep up, they cannot miss out on this influential new demo. The Machine can help.
Ready to learn more about the lucrative MSBO segment? Read Cargo’s whole study here.