FOR IMMEDIATE RELEASE:
January 27, 2016
Scientific Opinion Poll: Millennials Identify Student Debt, Retirement Savings as Barriers to Entrepreneurship
Majority of millennials currently own or would like to own a business someday; identify student loan payments and lack of an employer-sponsored retirement plan as barriers to launching or growing a business
Washington, DC—A scientific opinion poll released today shows the majority of millennials (ages 18-34) who own a business or would like to start one at some point say student debt and lack of a retirement savings plan are barriers to entrepreneurship.
The poll, conducted Nov. 18-25, 2015, by North Star Opinion Research on behalf of Young Invincibles and Small Business Majority, found that the majority of millennials (51 percent) either own a business or organization, are planning to start a business, or would like to but do not currently have plans to do so.
When it comes to starting a business, millennials identify student debt and lack of an employer-sponsored retirement plan as financial barriers to entrepreneurship. Nearly half (48 percent) of millennials paying off student debt who currently own or have plans to own a business say their student loan payments have impacted their ability to start a business. And nearly 4 in 10 (38 percent) millennials who are interested in opening a business but have no current plans to do so say their student loan payments affect their ability to start a business.
“Right now, I cover upfront necessities for my business, like insurance and marketing materials, out of my own pocket,” said Amanda Golden, co-owner of Designing Local in Columbus, Ohio. “My loans are currently deferred, but as soon as they’re back on the table, using my own money to cover these costs will be out of the question. Student loans are really a burden that restrain my ability to run my own business. Millennials deserve a fighting chance to start small businesses, but student loans are holding us back.”
Additionally, of those who are still paying off student loans, 43 percent of those who own or have current plans to own a business, and 38 percent who would like to own a business but have no current business plans, say their student debt affects their ability to invest in an organization or hire new employees.
What’s more, three-quarters (75 percent) of millennials who own, plan to own, or would like to own a business say the lack of an employer-sponsored retirement plan is a barrier to entrepreneurship.
“Millennials show exciting levels of interest in entrepreneurship, yet youth entrepreneurship remains comparatively low,” said Rory O’Sullivan, Deputy Director of Young Invincibles. “This poll makes clear that millennials see student debt as a barrier as they explore a pathway to building their own businesses.”
“Entrepreneurship represents the pathway to success for many millennials, but they face significant hurdles to launching and growing their businesses,” said Conan Knoll, Vice President, Entrepreneurship, for Small Business Majority. “As this poll shows, student debt and lack of a retirement savings plan are a real problem for millennial entrepreneurs. Considering the majority of millennials are or would like to become entrepreneurs, it’s important to address these issues that are holding young Americans back from launching their businesses and helping our economy thrive.”
For the full poll report, please click here.