Should We Encourage Our Kids To Start a Business Right After College?
Reported by Liku Zelleke
More and more young people are bucking the trend of graduating from college and hunting for jobs. They are instead joining the rapidly growing number of young grads who opt to start their own businesses.
According to a study done by the Ewing Marion Kaufman Foundation, in the three years from 2010 to 2013, 45% of business school grads opted for the same choice – almost twice as many as those that did the same thing between 2000 and 2009 – becoming instant entrepreneurs.
But, going straight into one’s own business after college, isn’t for everyone. Here are some advantages and disadvantages to take note of:
- There is no guarantee of a paycheck. But it is worth the freedom and flexibility that comes with running one’s own business. Creativity isn’t limited and it is only after having honed one’s skills that the checks will start coming in on a regular basis.
- It’s a lonely career path. Once they jump into their own business, many entrepreneurs will find themselves isolated. Perhaps that is why the “peak age” for starting a company is around 40 years.
- Getting financial backing can be quite a challenge. That fact is worsened when it rides on the back of student loans.
- Straight out of college, when you are young and strong is the best time to not have a steady paycheck. Even if their business fails – of which there is a 50% chance of it doing so, within the first 5 years – 20-somethings can take it as a lesson and can then incorporate what they have learned into their next venture.
- College grads already have their contacts in place in the form of their recent graduated alumni. But of course, they won’t only rely on them for their business.
- It is a great way to learn all there is to know about a trade. A new entrepreneur will quickly need to learn how to become a financier, an accountant, a marketer and a manager – all at once.
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