No spouse, no kids, and no money? It may be the perfect time to start a business.
With little to lose and everything to gain, young entrepreneurs are in the perfect position to take the risks involved with starting a business. But youthful inexperience may seem too big of an obstacle for most. Only one percent of businesses are owned by people under the age of twenty-five, according to the U.S. Census Bureau’s 2002 survey of business owners. Young people starting a business face unique obstacles, but avoiding four common mistakes can improve the chance that living a dream can also start to paying the bills.
1. Not Enough Networking
One of the most profound differences between young professionals and their older counterparts is the lack of networking opportunities. Seasoned entrepreneurs and those fresh from the corporate world have had the time to build up a list of contacts to help with a start-up. Without their own industry experience, young people must rely on the advice of others who have gone before them.
“If you can get mentors to help you then you don’t have to learn everything on your own every time you make decisions,” said Judith Cone of the Kauffman Foundation, which works to encourage entrepreneurship across America and improve education. “Almost every community has support organizations for entrepreneurs.”
Government organizations affiliated with the Small Business Administration (SBA) have offices all over the country, as well as a national network. Peggy Fajohn, lender relations specialist at the Richmond, Va., SBA office, said all programs are open to young entrepreneurs but none are specific to them. Organizations like SCORE, Counselors to America’s Small Business, provide counseling to small business from retired and practicing business owners. The Small Business Development Centers network has in every state. Many, but not all, are located at colleges and universities where they provide counseling and classroom training.
“They are great networking opportunities,” Fajohn said.
Fajohn also mentioned about 100 Women’s Business Centers across the country that provide, among other services, mentor protégé opportunities. But the name shouldn’t fool anyone.
