Millennials are reluctant to start new businesses. The figures say it all: only 165,000 new businesses were started within a space of four years- 2010 to 2014. In contrast, half a million new businesses were established from 1992 to 1996. A number of reasons exist for such a predicament. One primary reason is the regulations coupled with excessive taxes. The paucity of capital needed to begin and develop a company is also another reason.
Growth of jobs and tax load
It is a fact that small businesses and entrepreneurs generate the maximum number of jobs. About 99 percent of businesses in America are regarded as small businesses. In most cases, small businesses hand out more job offers than big companies. It is thus important for the government to ensure that people who have excellent ideas take them and successfully transform it into a job, product or service.
Regulations formulated by the Federal government affect small businesses across all industries. This makes it much more expensive and harder for smaller companies to begin, expand, and also grow their businesses. Costly mandates and high-compliance expenses bug entrepreneurs. It is important to lighten the regulatory burden. Small businesses can thrive in such an environment. The tax code is another problem. They have caused the demise of many businesses down the years. This is as most business founders do not have any accountancy backgrounds. They are unaware of the intricacies of the US tax code.
The House Small Business Committee held a hearing. They requested the industry experts to find a solution to reverse the decline. The solutions provided were simple and elegant. One invaluable recommendation was that the universities should be testing grounds for would-be innovators. Traditional education, combined with entrepreneurial lessons and experience, will lead to the creation of new businesses. New jobs will be created through the entrepreneurial accomplishments.
Universities are also catching on the importance of creating new businesses. Miami University, for example, has tweaked traditional internships into what they term as 'interactive apprenticeships'. Students could jump into the middle of the messy world of entrepreneurship during their university time itself. It is seen that more than 50 percent of Millenials are interested to begin a new business. Interestingly, it is observed that Millenials have more an aversion to risk compared to previous generations. This is the reason the United States is presently suffering a shortage of dynamic entrepreneurs. Creation of business-friendly environment is the need of the hour. This can be achieved by the reduction of outdated or duplicate regulations which stunt company growth.