Millennial business owners are rising to keep pace with Gen-X and may overtake retiring Baby Boomers. In recent reports released by SCORE, nearly 28 percent of millennial women see opportunities for entrepreneurship. In a similar report, most millennial business owners believe their generation is more driven in regards to business ownership and starting companies that truly make a difference in people’s lives. Yet at the same time, millennial business owners are more likely to leverage non-traditional financing sources to get the capital they need to launch and grow their operations.
Meet the Internet Generation
Even at the earliest years of the generation (those born in 1982), Millennials have been going online since high school. Those born in later years never knew of a time when the Internet didn’t exist. The Internet is more than just a fun diversion – it’s a way to understand and appeal to different audiences, tap niche markets, and figure out vacuums that can be filled by viable and impactful products and services. Any Millennial who has operated a public YouTube channel or social media page knows how to leverage digital marketing to build brand awareness, even if it’s just for fun. That knowledge translates easily to the changing landscape of the business world, and millennial business owners are poised to incorporate their skills with running their own companies.
Learning from the Past
Millennials witnessed the effects of the Great Recessions first-hand a little over a decade ago. Many came of age in a world where they couldn’t find jobs or had to default on student loans. For many, it meant that traditional lending channels were not an option when trying to launch their own businesses, But with the recession came the rise of the gig economy and crowdfunding sites.
The gig economy allowed Millennials to build revenue by freelancing and essentially becoming solopreneurs. Crowdfunding opened the door for people to raise capital to launch their own ventures. However, crowdfunding also opened the doors to abuses of the system, as evidenced by Theranos and a host of other crowdfunded projects where the people simply vanished after reaching their funding goal, or simply failed to deliver on promises to their backers. This left millennial business owners looking for more reliable and reputable sources to finance their businesses.
Millennial Business Owners and Alternative Lending
Like many people, Millennials have an aversion to debt stemming from their own experiences with college loans, as well as how traditional lending channels handled mortgages and business finances leading up to the Great Recession. Alternative lending offers more flexibility and customized business financing solutions, some of which do not place debt on the books. Millennial business owners can use options such as merchant cash advances to access working capital necessary to grow their operations without taking on additional debt. Unsecured business lines of credit – once only available for large and established businesses – are now accessible by startups and small business owners. Alternative lenders steer away from cookie-cutter loans and provide business financing tailored to the needs of millennial business owners.
Web Finance Direct offers a wide range of business financing solutions to help millennial entrepreneurs launch, sustain, and grow their businesses. Contact Web Finance Direct today and get the business financing you need.