Entrepreneurial enthusiasm: black teens see greater job security in owning a business - Facts & Figures

Black Enterprise, Feb, 2004 by Carolyn M. Brown

Having watched their parents and older siblings fall prey to massive job layoffs in corporate America, today's youth are, not surprisingly, enthusiastic about becoming entrepreneurs. Roughly 41% of teens (those age 13 to 18) believe that owning a business provides greater job security than working for a company. Moreover, about 81% believed that there is greater job satisfaction in owning a business than in working for someone else, according to the 2003 Interprise Poll on Entrepreneurship conducted by Junior Achievement a nonprofit organization that provides in-school and after-school programs in such areas as economics, financial literacy, and entrepreneurship.

When asked if they would like to start their own business someday, 75% responded yes, while 18% said no. Moreover, African American youth were more likely to denote a willingness to become entrepreneurs compared to white teens, 86% versus 69%. More boys, at 80%, than girls, at 71%, expressed a desire to become entrepreneurs.

Young people are fully aware of the challenges involved with starting a business. Only 11% perceived that their efforts would be easy or very easy while almost half, or 49%, believed that starting a business would be somewhat challenging.

Nearly half, or 49%, of the teens believed that independence was the primary reason people became entrepreneurs. Having a great idea and wanting to see it in action was the second choice at 32%.

What factors would derail today's youth from pursuing their entrepreneurial aspirations? Not enough money to get a business started, 38%, and fear of failure, 29% were the top two reasons. This is the exact reverse of JA'S 2000 survey, which showed that fear of failure, at 39% was the most commonly cited reason for not starting a business, while 28% of the teens cited not having enough money.

Desire to Start a Business

Asian/Pacific Islanders        89%
African American               86%
Hispanic/Latino                79%
White                          69%

Business Preferences

Professional Service           30%
Retail Business                27%
Restaurant or Food-related     13%
Trade Service                   7%
E-commerce or Internet-based    6%
Other                          17%

Reasons for Not Starting a Business

Not Enough Startup Money       38%
Fear of Failure                29%
Other Interest                 17%
Too Much Work                   8%
Government Obstacles            6%
Other                           4%

SOURCE: 2003 JUNIOR ACHIEVEMENT INTERPRISE POOL ON
TEENS AND ENTREPRENEURSHIP

Note: Table made from bar graph.