A new report shows that the youth are more entrepreneurial than adults. But are there businesses successful or driving the economy?

1. Are Today’s Youth More
Entrepreneurial Than
Adults?

2. According to a new Global Entrepreneurship
Monitor report, youth, as a group, have shown a
significantly higher level of entrepreneurial spirit
and ambition than the adults who have preceded
them. The youth age group, defined by GEM in
their study, includes adults ages 18 to 34.

3. Throughout five world regions, youth are 1.6
times more likely to want to start a business than
are adults. The five regions include: sub-Saharan
Africa, Middle East and North Africa, SOuth and
East Asia, Latin America and the Caribbean, and
the European culture countries.

4. The study analyzed data collected between 2012
and 2014, and gives great insight into what is
driving young entrepreneurs and what impacts
their success as well as failures.

5. “A shortage of employment opportunities, especially
amongst the youth, is a major problem in the world,” stated
Mike Herrington, executive director of GEM. “This has been
exacerbated by the financial crisis and global economic
downturn. Fostering effective entrepreneurial activity among
the youth is seen as a critical development strategy in order
to integrate them into the labor market and harness their
potential to contribute to sustainable economic
development.”

6. Despite the high frequency of youth starting
businesses, adults still appear to run more mature
businesses. According to Thomas Schott, 73% of
businesses run by youth under 24 years of age
are one-person businesses and are less likely to
be running businesses that have survived beyond
their first three-and-a-half years.

7. Adversely, adults over 34 years of age
are 1.7 times more likely than youth to
be running mature businesses.

8. The findings in the report are certainly
promising as it shows an eagerness from the
youth to create, think, and build. However, the
report also highlights the need for more
entrepreneurship specific training so that they
can successfully transition an idea into a reality.

9. “Appropriate entrepreneurship support policies
and programs will help actualize the intentions
of the youth, who are currently bearing the
brunt of a sluggish global economy,” concludes
Herrington.