WWhen you think of a typical small business, do you think of Anne Hathaway, a knowledgeable and beautiful actor who ran a Brooklyn-based fashion startup as an intern? Or are you thinking about Jesse Eisenberg’s portrayal of Mark Zuckerberg on social networks?
Television ads show that young and energetic entrepreneurs are paving the way for success. The cover of an airport business magazine shows that cool kids are making millions of cool things. These are the young and beautiful faces of the entrepreneurial spirit that the media loves. In reality, the face of a small business looks like me.
I am 56 years old and run a small business. I’m a real demographic. In fact, New survey Of the more than 3,000 business owners run by Score, a non-profit organization belonging to the Small and Medium Business Administration, 51% of US small businesses account for only 21% of the population, but are owned by people over the age of 55. I am.
Yup. Small business owners (the majority of them) are middle-aged people like me.
Called “Angkor Entrepreneurs” in the score survey, these business owners have quite distinctive features other than wrinkles. Surveys show that we are 62% more likely to receive non-governmental assistance than young people and may be approved for official development assistance, including PPP loans, unemployment insurance, and other federal / state financial aid sources. Sex is 20-46% higher. Business owner. The government seems to value the experience more than the youth!
Surveys also prefer that instead of taking advantage of these funding opportunities, many of us rely on our personal finances, including savings (74%) and credit cards (36.6%). I found. Also, compared to young entrepreneurs, they are 52.3% more likely to use their retirement savings to fund their businesses.
Most of our small business owners don’t run these hot startups or build exciting apps. We own restaurants, gas stations, pizzerias and roofing companies. We manage projects, sell gaskets, pave roads, and ship packaging pallets. We have been doing this for decades. And we are still moving forward.
So what does that mean? Until the new generation slowly and inevitably takes over, the “old school” way of doing business remains the norm, resisting what the younger generation wants and what young entrepreneurs are doing. “Cloud”. It offers progressive benefits such as working from home and unlimited paid leave. Unfortunately, older school owners take time to adapt to today’s more comprehensive work environment and behavior.
Many middle-aged business owners also mean a boom in successor development and exit strategies.BizBuy Sell, a business sales market Already reported The number of companies buying and selling each other (at premium prices) is skyrocketing, and this trend will probably accelerate as 51% approach retirement. As with the industry for wealth management, retirement planning, and tax advice, there is an increasing number of employee ownership initiatives promoted by older owners who want to take over the company to their employees.
Most importantly, it represents a great opportunity for young entrepreneurs who want to start their own company. Do you really think that 51% of these have successors? Based on the experience of my clients, I can assure you that they will not.According to James Wallac First American Bank70% of America’s 12 million private sector companies, where Baby Boomer wealth is concentrated, are expected to change hands in the next 10 to 15 years. However, 75% of business owners admit that they have no plans to transfer ownership and control of the company when they are ready to resign.
For young entrepreneurs, raising the rank of a company owned by one of these old entrepreneurs and planning to eventually buy the owner is more successful for me than starting something from scratch. It’s a more solid road.
So be patient, my young friend. Your time will come. ]
Most small business owners are middle-aged and not the “cool kids” that the media loves.US SMEs
Source link Most small business owners are middle-aged and not the “cool kids” that the media loves.US SMEs