It's often said that youth is wasted on the young. But
according to a number of studies, 18- to 34-year-olds are making
good use of their youthful energy by starting or investing in
businesses.
In its January 1997 report, A National Survey Among Stock
Investors, the Nasdaq Stock Market found that 19 percent of
Generation X investors expect to use the proceeds from the sale of
their stocks to start a business. And preliminary statistics
gathered in 1993 as part of the National Panel Study of U.S.
Business Start-Ups found that seven out of 10 start-ups are
launched by people aged 25 to 34.
"They are old enough to have experience and young enough to
have the energy," says Paul Reynolds, professor of
entrepreneurial studies at Babson College in Babson Park,
Massachusetts, and coordinator of the National Panel Study of U.S.
Business Start-Ups. "By the time people get into their 40s,
they become accustomed to a certain career path and have a
commitment in that direction."
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Young U.S. entrepreneurs fall into two categories, says
Reynolds. "One group seems to have full- or part-time
employment, and the new business [is a] sideline. The other group
seems more involved in starting a business," he says. The
majority are male (60 percent) and white (73 percent).
The types of companies young entrepreneurs create range from
manufacturing to service, with heavier concentrations in
construction, retail and services.
These Xers are not impetuous egomaniacs whose eagerness to
achieve causes them to fall by the wayside in larger numbers than
other entrepreneurs. In fact, Reynolds found that their success
rate mirrors the average.
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