Starting a business is no longer just a dream for those experienced in the business world. New estimates from the Global Entrepreneurship Monitor 2012 Global Report indicate more young people may be looking to launch their own companies and obtain business financing.
The report estimated that almost half of the global entrepreneurial community is between 25 and 44 and that worldwide people in the 25-to-34 age range demonstrated the most entrepreneurial activity. Non-EU European countries reported high levels of young business owners, with half of entrepreneurs between 18 and 34. China also had a high level of young entrepreneurs in this age range, with 57 percent of its business owners in that demographic.
"Although most of the entrepreneurs tend to fall into the early to mid-career age ranges, we see people participating in entrepreneurship at all ages," said Donna Kelley, co-author of the report and an associate professor at Babson College. "Encouragingly, in every part of the world, youth are starting businesses as well as those in their late careers. Given this broad spectrum of participation, some economies may be well-served by looking more closely at certain age groups in order to determine how to encourage and support entrepreneurial activity. Whether it be educated youth in a society unable to find jobs to apply their skills, mid-career workers suddenly unemployed, retirees wanting or needing to continue earning income, or individuals of any age that recognize opportunities and have the desire to be entrepreneurs, people have particular strengths they can leverage at various points in their careers, but they are likely to need different training and resources to effectively engage in entrepreneurial pursuits."
More intending to become business owners
The report found that countries with high levels of people interested in entrepreneurship were those with factor-driven economies featuring low labor expenses, plentiful natural resources and strong export economies. In countries with these characteristics, intentions are high, at 48 percent. On the contrary, these ambitions decrease to 26 percent in efficiency-driven and 11 percent in innovation-driven groups.
Young entrepreneurs with strong intentions to start a business in any market or country often first need to obtain startup funding to help them get their company off the ground and begin turning a profit. While some may look to larger banks for these loans, others may find they have more success and personalized options by working with smaller financial institutions.
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