“Compared to older generations, millennial business owners quickly adopt new technologies and integrate them into their business operations.”
Despite growing up during a recession, millennials aren’t afraid to build businesses in tough economic times, whether global or local. They measure success by the quality of their work-life balance and their ability to give back to the community, according to a new report from Xero.
“As both a millennial and an entrepreneur, I can easily identify with these results,” said Mr. Blake Oliver, freelance accountant and Xero Ambassador. “I never wanted to follow the traditional route. I want a job where I make a real difference—something I can be passionate about. That’s why I started my own business. It may not be as lucrative as working for a traditional firm, but it’s well worth it.”
Recession Aftershocks as a Catalyst
Growing up during the recession, millennials are now trying to enter the workforce in the worst economy since the Great Depression. More millennials are now ditching traditional career paths and opting to start their own businesses.
From 1,200 respondents who are current and former business owners in the US ranging from ages 18 to over 50, the survey found that unemployment is the biggest motivator for millennials wanting to start their own businesses (22%). This is almost double that of respondents between the ages of 30 and 50 (12%).
“These survey results reaffirm what we already knew: millennials want flexibility, they want to work whenever and from wherever,” said Ms. Amy Vetter, global vice president of education and head of accounting at Xero. “Anyone looking to work with millennial business owners needs to meet this generation where they are, and that’s increasingly becoming in the cloud.”
Redefining Success
A healthy work-life balance—not the number of zeros in bank accounts—is how 79% of millennials measure business success. Millennials, raised on the internet and mobile devices, seek flexible work arrangements. About 67% of millennial respondents say having a schedule that allows them to travel and pursue personal interests is the second most important benchmark of success. Millennials also prioritize giving back to their communities, with 46% seeing it as a sign of success.
Moving Forward with Caution
Despite a growing economy, millennials remain cautiously optimistic about their companies’ future growth (49%). Interestingly, respondents over 50 were the most optimistic about their companies’ future growth (57%) but also the most worried about a local suffering economy (47%)—millennials are the opposite. About 43% of millennials said the rising costs of running a business keep them up at night.
Other Findings Include:
– Aggressive Growth: Nearly two-thirds (61%) plan to grow their businesses organically from existing operations, with growing customer bases being the top business priority in 2016 for 73%.
– Business in the Cloud: 35% of millennials run businesses that are at least half cloud-based, and 27% run entirely in the cloud.
– Leaders in Social Media: Social media is the most popular way for millennial small business owners (61%) to communicate one-on-one with their customers. It is also their preferred channel for communicating with their accountants and bookkeepers.
“Compared to older generations, millennial business owners quickly adopt new technologies and integrate them into their business operations,” said Mr. Jeff Phillips, CEO of Accountingfly. “Millennials see the value in technology and are willing to try almost anything if it will make their lives easier. Accountants and bookkeepers with modern, cloud-based practices are winning big with this generation because they are meeting them where they are.”
