The number of new entrepreneurs in the U.S. has been gradually declining and this poses a threat to an economy that is still grappling. This decline is taking place despite the technology evolutions being experienced in all sectors, with millennials being among the greatest supporters and users of new technology. There is a need to establish ways to encourage young people to start businesses and increase entrepreneurial activity. The following are some of the ways in which entrepreneurial activity can be increased:
New entrepreneurs require experienced individuals who can guide them through the various elements of creating a startup. Apprenticeship programs are very important as they help new entrepreneurs learn about diverse elements of a business. This enables them to create a solid foundation for their new businesses.
Reduced costs and regulations:
Some of the greatest challenges faced by new entrepreneurs are the high costs and regulations of creating a new business. Federal and state authorities should establish special regulations that favor creation of new startups and also reduce the costs of creating these businesses. These will encourage young people to start new businesses.
Provide financial support:
By setting aside funds for new entrepreneurs, many young people will be encouraged to launch startups. Another strategy can be to cover student loans for the young people who start a business immediately after they graduate from college. This will encourage the young people to start new businesses without the fear of high levels of student debts.
Give incentives to investors that support new startups:
Most of the institutional and professional investors prefer investing in mature companies than startups. This can be reversed if the investors get incentives for investing in startup companies. It will create opportunities for startups to access more capital and technical support from experienced investors.
Provide technology training:
Inasmuch as this is a tech-savvy generation where young people have access to the internet and other tech-tools, they may not know how to use this technology to create businesses. It is important to train the young people on how to become tech-savvy and tech-proficient, in relation to business creation. This will help them take the advantage of technology to start and operate their businesses profitably.
Entrepreneurship is a learning path that requires frequent consultation. Professional networks and communities can be created where young people can seek advice and guidance on how to go through the early stage of entrepreneurship. This is where new entrepreneurs can get mentors and advisors to help them go through the stage
Startup and entrepreneurship programs:
Young people who have interest in entrepreneurship can benefit a lot from these programs, while they are still in college. This helps in building a culture of entrepreneurship among young people. When they graduate they will already have the basics of entrepreneurship, and thus would be easier for them to get started.