Raising Entrepreneurs

Welcome back!

Author Donna Fenn shares her insights into Gen Y entrepreneurs – their strengths and weaknesses.

Ypulse: What are some of the recurring themes you’ve seen among Gen Y entrepreneurs?

Donna Fenn: I think there are several recurring themes and Upstarts is organized around eight of them. This generation of entrepreneurs is fundamentally different from their older counterparts. Their use of technology is very important, of course, and that’s the first thing that people typically mention about them. But I think that misses the most important point about this generation, which is that they are, first and foremost, highly collaborative – I call them “Extreme Collaborators.” They’re accustomed to team work and I see that in the way they start and grow their companies. It isn’t just that they tend to start companies with partners, but also that they draw upon a huge pool of resources that just weren’t available to older entrepreneurs – college professors who teach entrepreneurship courses (a relatively new phenomenon), parents who are supportive of their entrepreneurial ventures, older entrepreneurs who are willing to mentor and sometimes invest in them. So these resources are readily available and Gen Y entrepreneurs are eager to use them. They’re not afraid to say “I don’t know how to do this; help me.” I think that previous generations prized the romantic image of the “lone wolf entrepreneur.” But the world has changed and Gen Y intuitively understands the power of collaboration and collective knowledge. And yes, they know how to use technology to harness that power. But it’s important to remember that technology is a tool.

YP: How will the economic downturn affect existing and future millennial-run startups?

DF: We’ve seen increases in business startups during the last two recessions and I think this recession will be no exception. In light of massive corporate layoffs, not to mention decreasing levels of trust in large corporations, I think we may see a record number of startups in the coming months. And I think Millennials will lead the way. Because they’re young and relatively unburdened by the financial obligations of their parents’ generation, they’re great at bootstrapping. They don’t mind eating Top Ramen and sleeping on a futon at the office. Recession startups are typically bootstrapped startups, and not companies that need significant amounts of investment capital right out of the starting gate. I don’t think capital has completely dried up, but it’s wildly difficult to get in the current economic environment.

As for existing millennial run companies, I do think that they have a remarkable ability to be agile and flexible and to react quickly to market changes. Their expertise with technology allows them to operate leanly and efficiently. That’s all critically important when money is tight. But in the final analysis, they’re in the same boat as everyone else. They’ll need to find creative ways to cut back expenses, create value for their customers, and differentiate themselves in the marketplace. If they can do that while their competitors are going under, they’ll be well-positioned for success when the economy recovers.

YP: How do Gen Y entrepreneurs differ from entrepreneurs from previous generations?

DF:I think it all starts with, as I mentioned above, collaboration and their use of technology. But there are other notable differences. I’ve noticed that GenY entrepreneurs are more likely to have some sort of social mission right out the gate. Like Tom Szaky, they’re “Social Capitalists.” While older entrepreneurs tend to wait until their companies are established and profitable, young entrepreneurs often want to make a commitment to a social mission right away. For instance, Happy Baby Food pledges to feed a child in Malawi for a day for every package sold. This generation wants to change the world and they’re using entrepreneurship to do it.

Also, I think Gen Y really understands the power of brands and is creating some memorable ones, sometimes in industries that we don’t think of “brandable.” Yes, we’ve got The Hundreds and Johnny Cupcakes – fabulous GenY brands. But there’s also Sittercity, a brilliantly branded web-based company that matches babysitters with families; and Meathead Movers, which uses its employees – mostly college athletes – to distinguish its company from its many competitors.

Gen Y entrepreneurs are also what I call “Workplace Renegades.” Typically, they reject traditional, hierarchical workplaces in favor of more participative, flexible, meritocratic corporate cultures. That doesn’t mean people don’t work hard at their companies; in fact work and life appear to be a kind of 24-7 mash up. They’re treating their employees the way they want to be treated: they’re training them; they’re making the office fun and engaging; they’re providing frequent feedback and meaningful incentives. Frankly, I think Gen Y entrepreneurs and employees are giving us all a new definition of work.

Read the full interview on YPulse.

Rural America is witnessing a trend in our work with rural communities a growing number of high school and college students who would like to return to their rural hometowns if good career opportunities were available. The burgeoning interest in entrepreneurial careers combined with the desire to “come home” create significant opportunities for rural leaders to begin to reverse historic outmigration trends and revitalize their communities.

Who are young entrepreneurs? They range from an elementary school student operating a successful lemonade stand on a hot summer afternoon, to a recent graduate who starts a new venture or begins to revitalize an existing business. Young entrepreneurs exhibit a passion to create. When channeled and combined with entrepreneurial education and real world experience, they can found businesses with significant wealth and job creation potential. Engaging, equipping and supporting young entrepreneurs are keys to long-term vitality and sustainability of rural communities.

Understanding characteristics of young entrepreneurs is important because entrepreneurial youth often do not come to mind when we think about young people in our community. Instead, we might name the student body president, the star football or volleyball player, or the honor roll student. While some of these young people may be entrepreneurial, there is another group of youth that is less visible so you need to seek them out.

Why don’t these young people come to mind? They may spend their free time in Dad’s shop inventing or in Mom’s craft room creating, so they are “invisible” to you. They may work in their parents’ business after school because they enjoy it, or they may be busy operating their lawn care or Web design business. Young entrepreneurs enjoy the creative process so much that, while others are focused on sports and extracurricular activities, young entrepreneurs are focused on their business dreams.

Entrepreneurial youth may appear introverted because they know they are wired differently than their peers and, at this age, fitting in is a big deal. Remember, in the adult population, only one in 10 Americans is an entrepreneur. The percentage may be higher among young people, but they are still a minority among their classmates.

This article is an excerpt from “Energizing Young Entrepreneurs in Rural Communities” written by Craig Schroeder, Lisa Heinert, Lisa Bauer, Deborah Markley and Karen Dabson.

Researching the payment processing marketplace and learning how it could be improved were key to gaining their clients’ trust. “If you know your stuff, you don’t have to wear it on your chest,” says Peter J. Burns III, chancellor of the College of Entrepreneurship at Southern States University. “[When] you’re quietly confident, that speaks legions.”

While gaining trust is never easy, Burns notes that because entrepreneurship has become so popular with young people in recent years, clients may be more accustomed to doing business with younger business owners. “I believe the total framework for doing business with all ages is a lot easier today than it was before, but you still have to overcome the hurdles of people taking you seriously,” he says. “Your performance [overcomes] their lack of trust in doing business with you.”

To up your credibility quotient, Burns suggests networking with business leaders in your community and industry to learn and share knowledge. “You get into the mix and just sound smarter,” he says. “You can accelerate your learning.”

Dan goes into meetings knowing that often people are surprised by his age—but he goes in confidently, armed with knowledge of his industry. “Anytime you’re trying to build trust with someone, the key is to be honest with them,” says Dan, whose company expects sales of $5 million this year. “Normally there’s a bit of hesitancy in the handshake, but within a minute or two, I’m able to create a rapport just by the honesty, openness and knowledge I’ve built in the industry.”

Read the full story in The US News.

Renuka Sena

“Youths today are more creative, innovative and business savvy, making them a valuable asset in the increasingly competitive global marketplace,” said Sunitha Janamohanan, arts manager of the British Council.

“Now is the time for creative industries to flourish and encourage young, creative minds to venture into business. While young entrepreneurs have a lot to offer in terms of ideas and creations, they need to know how to protect themselves while marketing those ideas,” said Renuka Sena.

Renuka, an entrepreneur, was actively involved in the starting up of various companies after graduating from King’s College London with a Master’s Degree in Intellectual Property (IP).

As the deputy president of non-profit organisation Technopreneurs Association of Malaysia (TeAM), Renuka spends most of her time helping and nurturing budding entrepreneurs.
“Ordinary people often have extraordinary ideas, but dreams have no financial value,” said Renuka, who is also the director of Mindvault, a successful local IP consultancy which she built from scratch.

“Put your ideas into a tangible form, whether it’s a song, book, or artwork. Document each stage of its conceptualisation as evidence of how your idea evolved. You can’t look at a familiar design on a billboard and yell: ‘Hey, I designed that months ago for a class!’ in the middle of the street and expect people to believe you. After all, without any evidence, it’s hard to prove who thought of what and when,” said the bubbly entrepreneur.

Don’t let her relaxed demeanour and engaging smile fool you. Renuka may be petite in size, but her vast knowledge of IP makes her a formidable figure to parties who have any intention of exploiting the creativity of young people.

“As an entrepreneur, I know how it feels to have a dream you strongly believe in. I’m passionate about my work at Mindvault because we’re slowly educating more small businesses about their rights in IP through seminars and clinics.

“TeAM, on the other hand, is a channel for small companies to talk to government bodies about grants. Large companies are well-looked after, but the ‘small boys’ sometimes go unheard. TeAM gives them a voice, as the voices of many are louder than the voice of one.”

According to Renuka, the IP field in Malaysia took off in the last five years. While there is a growing awareness on the importance of IP, many businesses still lack the necessary knowledge.

“If, for instance, a band composed a song together, who’d own the completed song? Can a member sell the song without the consent of the rest of the band? How do the band members protect their interests when they approach record companies?”

Read the full story in the New Straits Times.

At last! We have the winners of the Cash-Smart Kids YouTube Video Competition.

In true democratic style, we have one girl and one boy, one video and one HubPages entry, one online and one offline business, and lots of praise for the quality of all the entrants.

So, without further ado, please step forward and take a bow – Rhiannon Leetham and Jason O’Neill!

Here is Rhiannon’s winning entry:

Rhiannon Leetham is a Cash-Smart Kid!

And here is Jason’s winning entry:

Young Entrepreneur – Jason O’Neill. Click here to read the full entry.

And here’s what judge, Peter Economy had to say (after complaining that he was only allowed to pick TWO winners).

If I am to select only two of the entrants, my choices are Rhiannon
(LOVE her video and idea) and Jason (he’s doing GREAT, is getting good
visibility, and likely has some excellent insights for our readers).

Congratulations to both winners, and to all the entrants – well done!