David Lerner Associates: National Entrepreneurship Week: Millennials vs Boomers

David Lerner Associates: National Entrepreneurship Week: Millennials vs Boomers

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2016-02-18

As America focuses attention on entrepreneurs this week, one of the troubling statistics is the slow decline of startups. Census data and other studies show that the number of companies less than a year old had declined as a share of all businesses by nearly 44 percent since 1978. As every entrepreneur knows, starting a new business can be very challenging. It requires talent, skill, and resources.

There does seem to be a generational factor at work here. Many of the successful entrepreneurs of our age are Boomers – Steve Jobs, Richard Branson, and Bill Gates come to mind. Even today people over 50 are out there starting new ventures. Millennials, those between 20 and 35, are not so keen on being entrepreneurs. [2] In 1996, young people launched 35 percent of startups, and by 2014, that number had sunk to 18 percent.

While these young adults are digital natives, and technology holds no challenges for them, they do tend to be more risk averse. According to the Global Entrepreneurship Monitor (GEM), 25-to-34-year-olds are significantly more worried about failure than their older counterparts.

Millennials are also less financially literate than Boomers. A recent FINRA Investor Education Foundation study, The Financial Capability of Young Adults—A Generational View reveals that Millennials display low levels of financial literacy. Only 24 percent were able to answer four or five questions correctly on a basic five-question financial literacy quiz. Lacking confidence in their financial skills could be the root of this problem, as starting a business requires financial savvy.

What Millennials can do to improve their financial literacy

Start with the basics: Take that simple financial quiz. Learn how to answer these basic financial questions correctly.

Find a trusted source:  There are many websites and blogs online that cater to the Millennials’ need to improve their financial knowledge. Browse the web, and find a source that resonates for your situation. 

Talk to a professional: An experienced financial and investment advisor can point you in the right direction. They’ll help you figure out a plan to gain more knowledge, and devise a strategy to improve your financial health.  

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. 

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. 

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Tags: David Lerner Associates, entrepreneurs, Age Based Info, financial literacy

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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Contact

Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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