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Get a job? No, make a job Gen Y & Entrepreneurship: Fad or Legacy
By Laura Vanderkam
Some are calling today the golden age of entrepreneurship. Leading this charge
................................................................................4-5 are young people who are starting their own businesses and receiving increased
support to do so. For example, in December 2006, the Kauffman Foundation put
an additional $25.5 million toward cross-campus entrepreneurship education.
Teens get rich with smart Furthermore, 2,100 colleges and universities now teach entrepreneurship,
ideas, hard work, good advice BusinessWeek reports, up from fewer than 400 in the early '90s. Furthermore,
By Kerry Hannon the Small Business Administration found that the number of self-employed peo-
ple under 21 rose from 142,000 in 2000 to 188,000 in 2005. This case study
....................................................................................6
explores entrepreneurship’s upward trend and the role that youth play in it.
© Copyright 2007 USA TODAY, a division of Gannett Co., Inc. All rights reser ved.
AS SEEN IN USA TODAY’S LIFE SECTION, DECEMBER 7, 2006
their parents didn't have. They see being 2002 book When Generations Collide, Global communication is easy and
their own boss as a way to resolve the says these young workers have very immediate. Businesses can outsource
conflict. So now they're pressing ahead different ideas from those of earlier products and services and get a toll-free
with new products or services or finding generations. telephone number for nationwide access.
a new twist on old-style careers. They're Taking a risk isn't quite the financial leap
at the leading edge of a trend toward "This generation has the group-think of faith it once was.
entrepreneurship that has bubbled for mentality," he says. "When you are raised
decades and now, thanks in large part to to collaborate at home, then you are "There's such a frontier for possible
technology, is starting to surge. taught how to do that in middle school business ideas," says Scott Neuberger, 25,
and practice it in college, you show up at CEO of Boston-based Collegeboxes. "The
"It is a fun-loving generation," says work saying 'Where's my team?' They're barrier to entry is very low and doesn't
Ellen Kossek, a Michigan State University just comfortable working with peers." require a lot of money in a lot of cases. I
professor in East Lansing who has spent think there's more of an entrepreneurial
18 years researching workplace Many go into business with friends. spirit in our generation than perhaps in
flexibility. other generations. Being an entrepreneur
Maren Seibold, 25, is an environmental has become cool and sexy."
"They view work as part of life, but consultant for a Seattle area company;
they don't live to work the way we were she teamed up last year with her 26- In 2004, Neuberger bought
socialized as boomers. There is a real year-old tattoo artist husband, Mark Collegeboxes, competitor of a business
mismatch between what the young Bentley, and a friend who does body he started at Washington University in St.
generation wants and what employers piercing, Anthony Mason, 24, to launch Louis to help students relocate. It now
are offering." Mantis Machines, which sells a operates in 18 states, offering door-to-
redesigned version of the instrument door pickup and delivery, shipping and
Kossek says work-life issues are among that professional tattooists use. storage services, and appliance rentals.
the top three concerns among young
graduates. But these young Seibold, who has a degree in chemical College students also are the focus of
entrepreneurs aren't always thinking engineering, tinkered with the tool to Arel Moodie's business, The Placefinder,
long-term about running their own shop. maximize its versatility and use a greater which helps students find off-campus
variety of needles. Mason's father owns a housing, roommates and sublets at his
"Employers aren't offering what they tool company and provided the alma mater, Binghamton University, in
want, so the young say they'll be their materials. A $10,000 loan helped them upstate New York. Moodie, of Johnson
own boss and start their own business." get started. "It was something we all City, N.Y., plans to expand further into the
wanted to do," Seibold says. state and to New Jersey.
But "what they find out is that it's not a
way to get a work-life balance. When you Bureau of Labor Statistics data for Getting started required taking a risk.
have your own business, you're working 2005 show that some 370,000 young "We were scared out of our minds,"
long hours, because if you don't work, people ages 16-24 were self-employed, Moodie, 23, says. "We realized we're
money doesn't come in." the occupational category that includes young, and we may not know everything
entrepreneurs. In 1975, when baby we need to know, but what do we have
Maybe because this is an optimistic boomers were young, some 351,000 to lose? If the business doesn't work,
bunch or perhaps because they haven't were in that category. While that growth we'll totally get jobs like everybody else."
planned their lives further than the over 30 years isn't striking, indicators
weekend, they don't seem too worried suggest more change ahead. The Bureau The self-employed are considerably
about work. But because they are young of Labor Statistics projects the self- more satisfied with their jobs than are
and so new to the workforce, much of employed category will grow 5% from other workers, according to a Pew
what is known about them is anecdotal 2004 to 2014, compared with 2% growth Research Center poll of 2,003 Americans
with little existing data about their work for the decade that began in 1994. ages 18 and over released in August.
habits. They're more satisfied with their salaries,
Such growth is largely a result of the the job security, chances for promotion,
Those who have studied generations in Internet, where snazzy websites don't level of on-the-job stress, flexibility of
the workplace, such as author David betray a home-based operation. hours and proximity of work and home,
Stillman of Minneapolis, do have some Entrepreneurs can be more professional the poll found.
insights. Stillman, who co-wrote the with less need for capital or office space.
"You've got a generation that has January, will provide students with seed support me, so I'll keep it as a side
clearly seen the corporate culture not be money from a venture capital fund project as I have for the past two years,"
loyal to their employees," says David vested with $4.5 million to help launch he says. "I'll take it as far as it can go."
Finney, president of Champlain College, projects.
which this fall launched a new program Sheena Lindahl, 24, and husband
to lure enterprising undergraduates Ian Schumann, 21, star ted his Michael Simmons, 25, have turned the
already in business for themselves. "This ultralight backpacking gear company rise of entrepreneurialism into their own
generation understands that the burden this fall during his senior year at the business. While attending New York
of taking care of themselves rests with University of Texas-Austin. He personally University in 2003, the duo started
them and not some company." bankrolled his invention — a trekking Extreme Entrepreneurship Education to
pole — that he assembles and sells help their peers pursue their dream
Although being an entrepreneur under the name Adapt All-Terrain Gear. careers. Lindahl has supported herself
doesn't require a college degree, since age 17. Simmons star ted a
increasing numbers of campuses are "All the money I've put into it has website-development company at 16,
offering courses to inspire those with come out of my personal savings. It was has won awards for entrepreneurship
business acumen. The Kansas City, Mo.- something I was excited about trying to and wrote an inspirational book about
based Ewing Marion Kauffman make work," he says. "If it doesn't work, business success. This fall, they
Foundation, which promotes I've wasted $1,500." branched out with a tour of college
entrepreneurship, keeps a tally of campuses to inspire future
courses related to entrepreneurship at Senior Jason Nikel, 23, of Shelburne, entrepreneurs.
two-year and four-year colleges and Vt., is in Champlain College's
universities. Newly compiled data show entrepreneurial program. Nikel, a "I think it has a lot to do with the high
that 80% of the 2,662 campuses in the multimedia and graphic design major, expectations we were brought up with.
report offer at least one such course. created a clothing line of hats, T-shirts 'You can do it. You can have what you
and hooded sweatshirts called Third want,''' Lindahl says. "We're criticized
Last month, Grand Canyon University, Shift Clothing. for wanting it all: high pay, purposeful
a private, Christian university in work, flexible hours. It's hard for people
Phoenix, announced a new College of "It's not exactly at the point where I in our generation just to do work."
Entrepreneurship that, star ting in can graduate and have the income
low-income student groups. "This is the There's also a push. Few people can when you triple the number of
biggest breakthrough in at-risk youth count on lifetime employment in a big employees in an organization, you halve
education in the last 100 years," Mariotti company. So corporate types moonlight each one's productivity. The corollary is
says. or move around within their companies that in general, more small businesses
to stay marketable, notes Marci Alboher, mean greater productivity. Greater
But it's not just at-risk kids who need author of the upcoming One productivity per worker translates into
to learn about entrepreneurship. Person/Multiple Careers: A New Model for higher living standards, just as better
Work/Life Success. "The idea that reading and math skills usually do.
Micro-businesses everyone has their one little spot on the
line is gone," she says. "We all have to be Entrepreneurship education programs
The vast majority of U.S. businesses entrepreneurial," which she defines as recognize that, just as you can learn to
have fewer than four employees. Young constantly learning new skills. read, you can learn to run a business.
people are even more interested in Michael Simmons has taken that lesson
starting these micro-businesses than are If the point of school is, in part, to to hear t. He and his Extreme
adults; a 2006 Junior Achievement prepare you for life after school, then Entrepreneurship Education partner (and
survey found that 71% of middle and high more kids need to learn how to pick up wife) Sheena Lindahl were just named to
school students would like to be self- new skill sets, judge markets, find their Business Week's Best Entrepreneurs
employed at some point, up from 64% in competitive advantages and make their under 25 List.
2004. cash registers ring. NF TE schools
recognize this, and so do many colleges; They're building a business while doing
Technology makes this increasingly 2,100 colleges and universities teach what they love. That's cer tainly a
possible. For a few bucks a month, entrepreneurship, BusinessWeek reports, message worth teaching.
anyone can create a website that up from fewer than 400 in the early '90s.
advertises a product or service to the Laura Vanderkam, author of
planet's 1 billion Internet users. That's This growing population of trained Grindhopping: Build a Rewarding Career
the pull factor. free agents will benefit the whole without Paying Your Dues, is a member of
economy. A study by technology USA TODAY's board of contributors.
consultant Allan Engelhardt found that
Teens get rich with smart ideas, hard work, good advice
By Kerry Hannon How many teens star t or run *"Hard work is the key to success. If
Special for USA TODAY businesses is not certain, but they seem you work hard, oppor tunities will
to be a growing niche. In 2005, 188,000 present themselves."
self-employed people in the USA were
under 21, compared with about 142,000 *"Everyone has dreams. The difference
in 2000, according to Brian Headd, an between those who are successful and
economist in the Small Business those who aren't is whether you have
Administration's Office of Advocacy. the guts to follow them. Only use the
doubters as motivation."
Tech advances (like the Internet) make
it easier to start and run businesses with Then, too, there's Robin Liss, 22,
little start-up capital. And nearly 1,800 founder and CEO of several websites,
colleges and universities offer courses in including CamcorderInfo.com, a site that
entrepreneurship, Swartz writes. "The draws four hundred thousand unique
liberating tonic of self-employment not visitors per month to her reviews.
only gives teens control of their jobs; it Known as a "gadget guru" on CNN, she
also sharpens the competitive spirit in says: "I would never call myself an expert
the United States. Perhaps tech teens are at anything. I'm always learning, always
Unbridled enthusiasm. Unchained a key cog in the American economic growing and trying to find new and
confidence. Unlimited opportunities. Ah machine, a hidden salvation in an ever- better ways of doing things. In my pursuit
… youth. changing global economy." to learn, I'm always looking for new
teachers."
In Young Wealth: Trade Secrets From These profiles are inspiring on many
Teens Who Are Changing American levels, for teens and parents alike. Swartz Bingo. Mentoring. It's a trade secret
Business , Jon Swar tz, a USA TODAY warns, however, that young that's worked for generations.
repor ter, profiles 15 young entrepreneurs face a "phalanx of
entrepreneurs. Most started in their early personal and professional obstacles." How to create luck
teens. All succeeded.
Early success is intoxicating. It can lead Entrepreneur Ben Casnocha describes
Take 18-year-old Ben Casnocha. His some to reject feedback and make it three ways to be lucky:
nickname is "Big Ben" — he's 6-foot-4. harder to learn in a corporate
And he's rich. environment, he writes. u "Expose yourself to as much
randomness as possible. Read books no
Casnocha schmoozes with executives Swartz's best portraits emerge from one else is reading. Talk to people no one
and venture capitalists in Silicon Valley in the cyberworld, an arena he covers for else is talking to. That's luck. That's
the morning and goes to high school in this newspaper, but he tosses into the randomness."
the afternoon. mix a rising country singer, a model and
a sports journalist, too. They have in u "Every time luck doesn't go my way,
Casnocha's company, Comcate, common, however, savvy use of the I believe a piece of good luck is right
markets software he designed for local Internet. around the corner."
governments. It started as a project for
Ben's sixth-grade tech class at a private Kids such as e-commerce mogul Sean u "Trick yourself. Self-deception is
school in San Francisco. Comcate now Belnick, 19, founder of BizChair.com, now essential to maintain high self-esteem.
has annual revenue of around $750,000 take in six-figure salaries while attending It's okay to take more credit than you
and 50 customers in small and midsize high school and college, Swartz writes. deserve, in your own mind, for successes.
cities in several states. It's okay to think you can outwork and
Or consider Graham Bensinger, 19, a out-passion anyone who competes with
Swar tz ends each profile with a sports journalist from Ladue, Mo. He has you. Stay humble on the outside, but
snapshot, including age, business, city, a weekly national radio show, consider yourself unstoppable on the
their biggest influence and a contributes to ESPN, writes a column for inside."
commentary on how they do it. ESPN.com and has a William Morris
Agency rep to sort out his deals. His
advice:
Pragmatism company public, becoming one of the laptop, fax machine, cellphone and other
world's most famous entrepreneurs. gizmos costs as little as $5,000. Add a
As passionate as entrepreneurs must professional-looking website for $500 or
be to drive start-ups forward, they also Strong ethics so, and you can compete with bigger,
know when to cut losses. "Know when Start-ups depend heavily on good first more established companies. But you
to give up on an idea," says Lou Marino, impressions when entrepreneurs hire can't take advantage of those lower costs
an associate professor of employees, court investors and line up if you aren't comfortable using popular
entrepreneurship at the University of customers. In a hyper-competitive word-processing, database, spreadsheet
Alabama at Tuscaloosa. "Not every idea economy, any whiff of dishonesty can and presentation programs.
an entrepreneur has is going to be a deep-six a new enterprise. Penn State
home run." Giving up doesn't necessarily University's Anthony Warren, who Tenacity
mean the business idea was bad. Instead, advises venture capitalists, says honesty
it might be the right idea at the wrong and trustworthiness are high on the list Sometimes the best business ideas fail
time — as was the case with thousands of attributes he looks for when he to take hold — not because there isn't
of dot-coms launched in the late 1990s considers recommending a venture to demand, but because the start-up was
before household high-speed Internet potential investors. "Who wants to be in undercapitalized, or the entrepreneur
access became widespread, making business with someone you cannot fully lacked management know-how or
viable all the offerings those dot-coms trust, especially in the start-up phase simply gave up too soon. "If you really
hoped to sell. where the stress levels are high?" says believe in it, you keep fighting for it," says
Warren, director of the school's Farrell Earl "Butch" Graves, president and CEO of
Risk-taking Center for Corporate Innovation and Black Enterprise, the magazine founded
Entrepreneurship. The founders of by his father, Earl Sr. One-third of new
You know start-up success isn't Google, Sergey Brin and Larry Page, small employers fail within two years;
guaranteed. Still, you don't flinch at the famously created a "don't be evil" mantra and 56% are toast after four years, says
thought of betting your severance pay or when they took their online search giant the Small Business Administration. About
retirement savings on self-employment. public. 672,000 small employers launched last
Would-be entrepreneurs are calculated year — but 545,000 others closed, the
risk-takers — like world-class Tech ease SBA says. A nobody entrepreneur who
mountaineers, says Vineet Buch, a principal started a variety store in Arkansas in
at venture-capital firm BlueRun Ventures in Feeling comfortable with technology is 1945 eventually lost the business when
Silicon Valley's Menlo Park. "They hammer crucial, because computers, software and his landlord wouldn't renew his lease.
in protection on the way to the top, but other gadgets are key to launching a But he didn't give up. "I've never been
don't let the thought of falling slow their business in the fastest-growing economy, one to dwell on reverses," Sam Walton
steps as the slope gets steeper and the service sector. Start-up costs there recalled in his autobiography, "and I
narrower," he says. "True entrepreneurs have plummeted as prices fell for didn't do so then." The company he
strive to control risk while still thriving on powerful computers and software. Those fought to start, Wal-Mart, is now the
it." Martha Stewart risked leaving the lower prices came as the Internet let USA's biggest private employer, with
safety net of publishing giant Time in 1996 entrepreneurs tap global markets for more than 1.3 million workers
to launch her Martha Stewart Living engineering, accounting and other
Omnimedia. She successfully took that services. Setting up a small office with a
you're born into a caste. You know who "Money creates the freedom to live the "My fear is not so much for our society
you are, and it doesn't change. Here, you life we want," he says. In addition to but for a sense of emptiness and
have to carve out your identity, and one online business ventures such as selling depression these kids might have as they
of the most obvious ways to do that is to Beanie Babies and gift cards, he has age," she says. "They're putting their
climb the ladder. It's not about birth and written a book, out this week from resources and energy and validation and
class, but it is about financial status." Simon & Schuster, You Call the Shots. self-worth into what people who aren't
close to them think of them, which is
Kristine Molina knows the pressure of The Pew study found young people are fame."
trying to keep up. Molina is a graduate about twice as likely (14%) to admire an
student in psychology and women's entertainer than a political leader (8%). The Pew study attempted to find out
studies on a fellowship at the University more about the attitudes of this
of Michigan in Ann Arbor. She was born "Famous people are in their faces so generation, which in many ways seem
in Nicaragua and raised in Miami by her much more, and as a society, we have such a contrast to the flower-child values
grandparents, both janitors. She received escalated the value we put on of many of their baby-boom parents.
financial aid at Smith College in celebrities," Thompson says.
Northampton, Mass., from which she MacNeil/Lehrer Productions commission-
graduated in 2005. Jason Barg, 24, a 2004 graduate of Penn ed the poll as part of a project studying
State University who works for a Generation Next. USA TODAY is a reporting
Pressure to fit in Philadelphia accounting firm and partner but did not help pay for the poll. The
founded an online real-estate company, margin of error for findings on 18- to 25-
"Being poor and being a person of says notoriety is more about standing year-olds is plus or minus 5 percentage
color and not wanting to fit the out from the crowd. points.
stereotype, my first year I bought
things," she says. "I bought a lot of "A primary goal of people my age is not Other research also suggests that the
clothes and stuff for my room, and I necessarily to become famous but to minds of millennials are preoccupied
bought my laptop. If my friends wanted become distinctive," he says. with money.
to go out, I'd go out and spend on food
when I knew I didn't have the money." Now, young people can be celebrities A Gallup Panel survey of 18- to 29-
in their own worlds by posting videos on year-olds released last month found that
She turns 24 this month. She says YouTube, posing like a model on 55% agreed or strongly agreed with the
hearing rags-to-riches stories and MySpace or creating an online reality statement "You dream about getting
watching television shows about the lives show featuring themselves. Pew found rich." A similar Gallup study in 2003 of
of the rich and famous inspires her to 54% of those 18 to 25 have used social people under 30 found that more than
want success in her own arena: She networking sites such as MySpace or half (51%) thought it was very likely or
wants to become a college professor. Facebook; 44% have created a profile somewhat likely that they "will ever be
featuring photos, hobbies or interests. rich."
"I see some professors who have these
big houses," she says. "It would be nice if "We've got a lot of people who, the Concerned about finances
I could." entire time they were growing up, the
only time anything impor tant was In an annual sur vey of college
Fame doesn't necessarily mean being happening, there was a camera present," freshmen by the Higher Education
on TV. "I personally hope to become an Thompson says. "When they were Research Institute at the University of
influential figure and to be a prominent exiting the womb, they had a camera California-Los Angeles, 2005 data show
researcher in my field," she says. "It's present. When they were blowing out that money is much more on their minds
famous, but it's much less than stardom. I that first candle or getting on the school than in the past. The percentage who say
want to affect society." bus for the first time, it was all being it is "essential" or "very important" to be
recorded." "very well off financially" grew from
Virginia entrepreneur Johnson started 41.9% in 1967 to 74.5% in 2005;
a dozen businesses before turning 21. He Consumer psychologist Kit Yarrow of "developing a meaningful philosophy of
says celebrities, from athletes to actors Golden Gate University in San Francisco life" dropped in importance from 85.8%
and music stars, get huge amounts of worries about the downside of young in 1967 to 45% in 2005.
money, so it's not surprising young people presenting themselves on the
people want that, too. Web vs. the intimacy that comes with The same was true for high school
real communication. seniors in 1976 compared with those in
2005. Monitoring the Future, a study thought having lots of money was "not Rich, though, "appeals to me," says
conducted annually by the University of important," down from 11% in 1976. Ayoub, who grew up in Needham, Mass.,
Michigan, found striking differences in a suburb of Boston.
responses to the question "How Mark Ayoub, 20, a junior majoring in "I don't need to be filthy rich," he says,
important to your life is having lots of politics and religion at Hendrix College "but I want to live above the minimum
money?" In 1976, 15.4% of 3,009 in Conway, Ark., says at one time, he — not just pay the bills but enjoy
respondents thought it was "extremely wanted to be famous in national politics comfort in life and not just provide a
important," compared with 25% of 2,587 but changed his mind after seeing how minimal experience for my kids."
young people in 2005. And in 2005, 5.6% politicians have so little personal time.
Letters
Letters
Good life isn’t expensive The answer is that the question itself is flawed, setting up a
false dichotomy that misses the essential point of what Gen Y is
After reading USA TODAY's article, I couldn't help but feel bad all about.
for Gen Y. The title of the article says it all — except that wealth
and fame are not really goals. They are the result (for some) of Today's young people have come of age in an era when Bono
working hard, making sacrifices, being the best in their field or and Bill Gates spend more time in African villages than they do
providing something of great value to society — not appearing on stage or in the boardroom, when green technology and
on a reality show and acting like a fool. wind power are hot commodities on Wall Street, when doing
well is often the result of doing good and vice versa.
Maybe this is a reaction to the harsh reality of escalated
living costs, disparity between rich and poor, and the fact that At World Learning, our intercultural education programs
"the good life" is expensive. send more than 3,000 young students a year to communities
around the world. While there, they learn about critical social
Or is it? I guess it depends on how you define "the good life." and environmental issues and make a difference through
A loving family, a satisfying job, a good meal, a community of hands-on projects, while improving their own prospects for
friends — that doesn't seem too expensive. gainful and meaningful careers in an increasingly globalized
work landscape.
Jeff Vande Wege
Concord, Calif. With hope, their generation will break down the unhelpful
dichotomy between personal success and social impact that
Wrong question asked previous ones created.
I read The goal: Wealth and fame, about the Pew Research John Fox
Center's survey of young adults, with more confusion than World Learning/
dismay. Confusion, because USA TODAY recently ran the story School for International Training
Generation Y gets involved, which argued the opposite point. Brattleboro, Vt.
2. Are high schools and colleges giving students the skills they need to start a business? If you were to design an entre-
preneurship curriculum, what are the key topics that you would cover?
3. Why are studies finding that more young people are interested in starting a business? What societal and technological
factors do you think are contributing to this trend?
2. What are the best business opportunities for young people to pursue in today’s day and age?
3. Do you think the rise in entrepreneurship is a long-term trend or short-term fad? Why or why not?
Additional Resources
Michael Simmons, co-founder of objective of providing students the tools and inspiration
Extreme Entrepreneurship they need to create a life of passion, purpose, and prosper-
Education and bestselling author ity. More can be learned at http://www.extremee.org/
of The Student Success
Manifesto, has been a keynote Michael co-founded his first business, Princeton
speaker at events and confer- WebSolutions (PWS), when he was 16 years old. PWS was
ences from Washington State to later rated the #1 youth-run web development company
Washington D.C. As a 2004 grad- in the nation by Youngbiz Magazine. In addition, Michael
uate of the Stern School of has been the winner of three entrepreneur of the year
Business at New York University, awards from the National Foundation for Teaching
an author, a teacher, a speaker, Entrepreneurship, Fleet, and the National Coalition for
Michael Simmons
and an award-winning entrepre- Empowering Youth Entrepreneurship. Furthermore, as
neur, he is able to deliver a unique perspective that con- president of the Entrepreneurial Exchange Group (EEG) at
nects with audiences. NYU, the club received NYU’s most prestigious student
activities recognition, the President's Service Award. He
Michael’s company, Extreme Entrepreneurship Education is and his company have been featured on the AOL Home
a New York based, media and education company dedicat- Page, USA Today, ABC, NBC, and CBS.
ed to helping students plan, prioritize, and pursue their
own vision in life by utilizing the entrepreneurial mindset. In 2006, Michael was named by Business Week as one of
Its books, online community, and speaking all focus on the the Top 25 Entrepreneurs Under 25.