Last week the Small Business Administration published the first report in a series of trends in entrepreneurship by the Office of Advocacy’s Office of Economic Research, “The Missing Millennial Entrepreneurs” by Daniel Wilmoth, PhD. The report’s focus was on how Millennials reported less self-employment than prior generations. This 6-page report analyzes important trends amongst Millennial entrepreneurs, comparing them to Generation X and Baby Boomers – ultimately suggesting that entrepreneurship among Millennials will continue to be relatively low for decades.
Some other important key points highlighted in the report include:
In 2014, less than 2 percent of Millennials reported self- employment, compared with 7.6 percent for Generation X and 8.3 percent for Baby Boomers.
At age 30, less than 4 percent of Millennials reported self-employment in their primary job in the previous year, compared with 5.4 percent for Generation X and 6.7 percent for Baby Boomers.
To explain a little more, Peer-To-Peer Lending or P2P is a funding model where individual investors give small personal loans online to individuals. The Office of Advocacy describes P2P as a hybrid of crowdfunding and marketplace lending.
The issue brief released today details the funding model and gives a side-by-side view of P2P and traditional small business financing options. It also shows how it could affect small businesses in the future, giving them more opportunity for financial growth.