Richmond, Va. (PRWEB) January 29, 2015
A recent Wall Street Journal article recently reports that young people starting their own businesses is at a 24-year low. Steve Sadler, CEO of Allegiancy, a commercial real estate asset management firm in Richmond, Va., recently took on this trend and offered tips to young people in his latest blog post.
"Something big is happening to America, and most people have not noticed yet," Sadler wrote. "The fabric of our economy is changing, and I don’t think it’s for the better."
Gallup’s CEO Jim Clifton also recently reported that the United States now ranks 12th among developed nations in business start-ups. He noted that, for the first time in history, American business deaths now outnumber business births.
"So where are the Steve Jobs and Bill Gates of today’s generation?" Sadler asked in the post. "Who is building tomorrow’s Apples, Microsofts, and Googles? In short, why are there so few entrepreneurial young guns today?"
Sadler offered some causes contributing to the decline and advice for "today’s gun-shy Millennials."
The most obvious cause is that young entrepreneurs lack capital, Sadler wrote.
"Without capital and the proper environment, we can’t expect growth in their new businesses. Any small business owner, regardless of age, can tell you that raising capital is extremely difficult in today’s economy."
Congress acted to address this issue in 2012 by passing the Jumpstart our Business Startups (JOBS) Act, which along with crowdfunding, included a provision to increase the amount a private company could raise through public securities.
However, as of 2015, the U.S. Securities and Exchange Commission (SEC) has not enacted the rules necessary for this plan to go into effect.
"Most young people are coming out of college with so much debt that they are indentured servants for the next 10 to 20 years — as they attempt to repay unfathomable student loans," Sadler added. "Young college grads have to take the big company jobs right away just to pay their bills. The best time in life to take risks and seize opportunities is in your 20s, when you are footloose, optimistic, and resilient. But now, because of student loans, it’s becoming the least likely time."
Sadler encouraged young would-be entrepreneurs to do the following in his blog post.
"Think outside the box in a big way when it comes to higher education," Sadler wrote. "Don’t accept the common wisdom that everyone has to go to a top-dollar college or go to college at all. Bill Gates and Michael Dell didn’t."
Don’t wait for the higher-education system to implode and then one day correct itself.
"Change your own higher education plan, demand more, and opt out of the rigged game," Sadler wrote. "Figure out the best ways to get the education, training, and experience you need now to be successful. Make sure your choices are financially feasible in the short-term and long-term."
"The main thing is to realize that you have choices — more choices that ever before," Sadler wrote. "Develop your own plan, and make sure it doesn’t include debt. Then you will have the freedom to join forces with other young innovators to create the new models that will benefit us all tomorrow."