Many millennials are now seeking work-life balance and the freedom to work from anywhere, especially after the pandemic. This shift in workplace culture is driving more millennials to start side hustles and consider entrepreneurship. Although there are more millennials starting businesses, it’s uncertain how this trend will impact the corporate workforce in the future.
By: Brandi Fowler
The pandemic has changed our view on work, leading to new small business ventures and side hustles. The U.S. Census Bureau reported that aspiring entrepreneurs filed 4.3 million business applications in 2020, a 24% increase from 2019, marking the highest volume since tracking began in 2004. In 2021, the number soared to 5.4 million, the highest on record and a 53% increase from 2019.
Millennials were a significant part of this trend. Before the pandemic, surveys showed that about half of millennials had some form of side hustle, earning an average of nearly $11,000 annually, according to a SunTrust Bank survey.
“Everyone I know has started a business, and I can’t be that out of touch,” said Ajay Yadav, co-founder of Simplified. “With the recent economic downturns, that sense of job security isn’t there anymore. Most innovation happens during tough times. I think millennials have embraced this.”
Post-pandemic, millennials see freedom as the ability to spend their time as they choose, Yadav noted. They are taking on more remote jobs and are happier because they can travel more and spend more time with loved ones.
“This desire for freedom is pushing people to think, ‘I want to have my own business, I want to create my own company,’” Yadav said. “This applies not only to scaling companies but also to starting indie companies. In the past year, I’ve seen many amazing indie startups.”
Alessandra Pollina, founder of Quotable Media Co. and host of the Female Millennial Entrepreneur podcast, has also noticed more millennials starting businesses.
“I started my business when I was younger, and since then, I’ve seen more and more people my age starting businesses every year,” Pollina said. “Several factors contribute to this, but COVID and the desire for more flexibility have played a big role. Many people used the extra time during the pandemic to start a project or side hustle and realized it could become a business.”
Pollina also mentioned that many millennial women, after having kids, turn to entrepreneurship for more flexibility.
The Benefits and Drawbacks of Entrepreneurship for Millennials
Flexibility and work-life balance are major benefits for millennials considering entrepreneurship, but security remains crucial too.
“People work hard and you never know what’s going to happen,” Yadav said. “It depends on the type of company. Startups are highly volatile because they must perform at their best. But having your own business means you can operate on your own terms. Millennials love solving problems, and many companies, like Facebook, were started by millennials. We set the standard for innovation.”
Not all millennials dive into entrepreneurship full-time initially. Many start with side hustles.
“The scariest part of starting a business is taking that leap,” Pollina said. “You move from a full-time income to starting from scratch without a salary or benefits. Starting as a side hustle eases this pressure and makes it easier to begin.”
Millennials should also be aware of the challenges before starting a business.
“One of the biggest drawbacks is that people see entrepreneurship as glamorous,” Yadav said. “In reality, it involves grinding, stress, and burnout. It can take seven to ten years, or even a decade, of hard work. Many don’t expect it to be this hard and get disillusioned when success doesn’t come quickly. Media often portrays overnight success, which can be misleading.”
Will More Millennials Leave Corporate Work for Entrepreneurship?
While more millennials are starting businesses, it’s uncertain if this will lead to a significant shift away from corporate jobs.
“Some people prefer the security of corporate jobs,” Yadav said. “Startups are risky, and not everyone wants to take that risk. Many are content contributing to a company’s growth. I think we’ll see more innovation and smaller companies with impactful employees.”
Pollina added that job market instability might drive more millennials to start businesses, even if they don’t leave corporate jobs entirely.
“People are realizing that corporate jobs aren’t as reliable as we thought,” Pollina said. “Entrepreneurship can be hard and scary, but it also offers control. You can put in the necessary effort and adapt, which gives you a sense of control over your future.”
Tips for Millennials Starting New Businesses
If you’re a millennial thinking about starting a business, don’t wait, Pollina advised.
“My top tip is to just start,” Pollina said. “Taking the first step is the hardest part. Once you do that, you can figure out the next steps. Don’t get overwhelmed by the entire process.”
Yadav recommended not diving in headfirst.
“One of the best ways to start a company is to do it on the side,” Yadav said. “Work on it after hours and on weekends. Keep your current job to pay the bills while you prepare for entrepreneurship. Understand that it will be hard, but stick to it and do it on your own terms.”
Yadav sees entrepreneurship as a journey of growth. “There’s no such thing as failure, only growth,” he said. “With persistence and hard work, you increase your chances of success. I’ve been doing this for 15 years and still have a long way to go. If you work harder than anyone else and don’t give up, you can succeed.”
Top Takeaways
Are many millennials starting businesses? Yes, they are considering entrepreneurship in the current job climate. Post-pandemic, more millennials are seeking work-life balance, making entrepreneurship attractive. However, they should start with side hustles to explore the space. While work-life balance and freedom are important, security is too. Thus, a major shift from corporate work to full-time entrepreneurship is unlikely in the near future.
