Millennials are continuing to quickly gain ground in the entrepreneurial space – and for good reason. The 2016 BNP Paribas Global Entrepreneur Report found that millennials are starting twice as many businesses as their parents.
Averaging 27.7 years old when starting their first business, Millennial entrepreneurs have a headcount of about 120 people in their primary business.Coastal tech hubs like Silicon Valley, New York and Boston are so often associated with entrepreneurship that we often forget to take a look at what’s happening with the rest of the country. There are a lot of initiatives out there focused on highlighting the “other 48 states” and their innovation ecosystems, and Steve Case’s “Rise of the Rest” is just one great example of these types of initiatives.
The golden question every ecosystem builder needs to address is:
“What are your unique community metrics of success, and how do your goals and objectives align to benefit your ecosystem?”
It is extremely difficult, if not impossible, for rural, urban and underserved communities to benchmark their entrepreneurial ecosystems by the same standards as “the big three.” For this reason, in order for entrepreneurship support organizations (ESOs) to maximize their community impact, it’s critical for them to understand the value their local Millennial demographic plays into this equation – especially since Millennials are starting to strongly favor second-tier cities over startup giants like Silicon Valley.
In fact, Millennials are recognizing there is a greater chance of success right in their own backyards. According to 2016 Pew Research study only 20% of Millennials – entrepreneurs included – have reported moving within the last year. So, let’s talk about what’s making them stay and how are Millennial entrepreneurs designing their very own “Silicon Valleys” in tier-two cities like yours.
1. Low cost of living and short commutes
This one is pretty straightforward. Oftentimes, the cost of living in large cities is nothing short of unfathomable. For frugal Millennial entrepreneurs who are trying to keep their heads above water in the startup world, not being able to afford the cost of living is less than ideal – coupled with the immense amount of student loans they are graduating college with, it’s pretty much a no brainer for them to stay local.
You’re probably familiar with the phrase “brain drain to the coasts.” With the rapid influx of people found in cities like New York, the price of living has skyrocketed and now many Millennials are questioning whether coastal cities are worth the cost. Take Birmingham, Alabama for example, “The Magic City’s low cost of living makes it one of the most budget-friendly metros in the country, ” according to Yellow Hammer News. This is equally appealing since Birmingham was just recently voted the #1 city of choice for Millennial Founders.
2. Tech trends
Millennials, and many others, are finding that the cost of living in big cities is no longer necessary because today’s technology makes it easier than ever to work virtually and communicate with coworkers and clients in real-time. An article from Fast Company claims, “The majority of urban hubs have largely exhausted their stores of opportunity.”
With this newfound flexibility, Millennial entrepreneurs can do more with less money and nurture their startups in more accepting ecosystems. Bringing success to the startup and more jobs in these emerging cities.
3. VC’s provide room for growth
According to the U.S. Chamber of Commerce Foundation, “In 2011, many took the leap. Millennials launched almost 160,000 startups each month, and 29% of all entrepreneurs were 20 to 34…
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