According to recent research by Bank of America, Millennials describe themselves as “confident” and “creative,” while Boomers and Gen-Xers identify as “hardworking” and “dedicated.” However, one common trait across all generations is their commitment to entrepreneurship.
What are the advantages and challenges Millennial entrepreneurs face compared to Gen X entrepreneurs? How can Gen Y entrepreneurs support their Boomer counterparts? I recently moderated a Google Hangout hosted by Bank of America*, featuring Generational Expert Dan Schawbel, Small Business Expert and USA Today Columnist Steve Strauss, and Bank of America Small Business Executive Robb Hilson. We discussed the differences and opportunities among entrepreneurs from different generations.
Co-Mentoring Creates a Win-Win: Effective co-mentoring happens when each party brings value to the other. While younger entrepreneurs often seek advice from older, experienced entrepreneurs, older entrepreneurs can also learn from the younger generation. Millennials can teach older generations about accessing younger customers and using technology.
Personal Credit is the Gateway to Business Credit: It is more challenging for Millennials to obtain credit because they have been in business for a shorter time and are earlier in the business lifecycle. Additionally, newer businesses often lack cash flow to lend against. One simple way Millennials can improve their credit profile and chances of accessing business credit is by opening a credit card. According to a recent Bank of America Better Money Habits survey, 78% of Millennials regularly use their debit card, and 41% have no credit card at all. This needs to change, especially for business owners. New business owners need a good personal credit track record, and credit cards are a simple way to build credit in the early years.
Technology Helps to Level the Playing Field Amongst Entrepreneurs: While Millennials are more tech-savvy as a generation, technology helps business owners of all ages be more productive and grow their businesses. Boomers and Gen X-ers should embrace social tools like Instagram and Facebook, which Millennials are well-versed in. Millennials can learn about recruitment and networking through LinkedIn, which is more favored by Boomers, Gen X, and Gen Y entrepreneurs.
Leverage the Way Each Generation Self-Identifies: Each generation identifies itself with different adjectives and has different values. For example, Millennials want honest and open leadership, while Boomers value security in their opportunities. When recruiting across different generations, it’s important to understand what’s important to each individual. Broaden your portfolio of benefits and the ways you interact with employees to ensure each employee feels valued.
Balance Traditional and Non-Traditional Funding Sources: The Bank of America Small Business Owner Report found that Millennial small business owners are nearly five times more likely than Gen-Xers to receive business funding from a peer-to-peer network. This difference is due to technology access and their business approach rather than the strength of their networks. Boomer and Gen X entrepreneurs should focus on harnessing technology and their extensive networks to find new ways to access funding. Additionally, not enough entrepreneurs use their business banker as a conduit to capital. For example, while Bank of America’s bankers provide direct access to credit, they also guide entrepreneurs toward non-traditional financing sources.
