A new report reveals that millennial entrepreneurs are starting in business earlier, at an average of 27.7 years in comparison to baby boomers at 35.3 years.
The 2016 BNP Paribas Global Entrepreneur Report, from Scorpio Partnership and BNP Paribas, focuses on business owners who are under 35 years old, and coins the term "Millennipreneur" to describe the demographic.
Go deeper with GlobalData
The report indicates a set of differences between young entrepreneurs and their Baby Boomer counterparts.
- Millennials have already started an average of 7.7 companies, versus 3.5 amongst Baby Boomers.
- Average annual turnover of Millennial businesses outperform Baby Boomers’ by 43%.
- 78% of successful "Millennipreneurs" have a history of businesses in their family.
Remi Frank, global head of key client group at BNP Paribas Wealth Management, suggests that Millennials are not merely inheriting the businesses of their Baby Boomer parents – they are going out on their own. However, he highlights that a history of entrepreneurship in the family is often the case. He also suggests that much of the funding for millennial businesses comes from personal loans from their families, rather than traditional lenders.
The report indicates that the top three wealth creation sectors for generation Y are retail (12.5%), professional services (8.5%) and technology (7.3%).
Vincent Lecomte, Co-CEO at BNP Paribas Wealth Management, says: "Millennials create more companies, with larger headcounts and higher target profits. They certainly tend to be interested in in the new economy, but are also equally active in many traditional sectors including retail and professional services such as law and accounting."
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFemale Entrepreneurs
The report also concentrates on the rise of female entrepreneurship, revealing a greater level of success in comparison to male entrepreneurs. It suggests that nearly three quarters of millennial female entrepreneurs anticipate that their profit levels will rise in the next year and their gross margin expectation is 34.9%. Poland, Spain and China have the highest rates of activity by successful female entrepreneurs. Swiss, German and Belgian women entrepreneurs are most likely to be first generation, with no history of business ownership in their family.
Investment trends
Across the entrepreneurs that had been surveyed for the report, investment volumes had risen 12% over the last year, with a notable increase in investments outside of their domestic markets.
Both Millennial and Baby Boomer entrepreneurs are allocating 20% of their total investments into their own businesses and 17% in real estate, with Remi Frank suggesting that London is still the most popular destination for global entrepreneurs to purchase property.
The report also indicates an appetite for private equity, averaging 9% of portfolios as well as socially responsible investments (SRIs), averaging 6% of investment total.
Frank adds that private equity is popular with entrepreneurs as they are often closely aligned with these types of investments. He also suggests that although gen Y entrepreneurs are interested in SRIs, they are often too early on in their life cycle to have a significant amount of interest in philanthropy.
