This column is a call to action for long-time small-business owners.
Our community needs small businesses that are vibrant, create jobs, add to the tax base and support local nonprofits. It needs business owners who protect the environment, are good citizens and engage in the public sphere.
Let me add one more duty to your list: encouraging young people to become entrepreneurs.
I came across some surprising and disturbing statistics in a book, “The Complacent Class: The Self-Defeating Quest for the American Dream,” written by Tyler Cowen. Cowen is a professor at George Mason University and is the co-author of the popular blog, Marginal Revolution.
We hear a lot in the popular business press about how the United States continues to be a “start-up nation.” We see activity in technology. However, these stats from Cowen’s book are counter to that narrative:
“The rate at which business start-ups are forming has been declining since the 1980s. By one estimate, start-ups were 12 to 13 percent of the firms in the economy in the 1980s, but today they are only about 7 to 8 percent.”
“Not only are there fewer start-ups, but a smaller percentage of them are succeeding. In the 1980s, 18.9 percent of employment in the American economy was at firms five years or younger. This average had fallen to 13.5 percent right before the Great Recession — a 29 percent decline over only 17 years.”
“The share of Americans under thirty who run a business has fallen by 65 percent since the 1980s.”
Think about those numbers for a minute and their long-term negative impact on our economy.
What can you do to reverse these trends?
Become a mentor: Seek out young entrepreneurs in your Chamber of Commerce to mentor, even if their business is in a different industry. Your real-world experience is invaluable and young business owners often struggle to find a supportive network to simply bounce ideas off of.
Volunteer for Junior Achievement: Junior Achievement has a wide range of terrific business programs for elementary and high schools. JA programs are fun and engaging and are simple for volunteers to deliver. They just need business folks willing to share their passion. Do not underestimate the impact you could have lighting the entrepreneurial flame for a local fifth grader.
Get involved with DECA: DECA has a high school business program and many local school districts participate. I have volunteered to be a judge for their business competitions, and I can attest that the kids in DECA are amazing. I cannot think of a more perfect group to change the decline in start-ups among the younger generation.
Your employees: Do not forget to encourage your own employees. Who works for you now that may be a future entrepreneur? Inspire them. Take them under your wing. Show them the ins and outs of owning a business.
One final thought.
Our region is reliant on the fortunes of a few major corporations. The current success of these companies does not guarantee future success. Now is the time to plant the seeds for future entrepreneurism. There is much work to be done. Time to get started.
Pat Sisneros is the Vice President of College Services at Everett Community College and former small business owner. Please send your comments to psisneros@everettcc.edu
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