In Friday’s Wall Street Journal, an article talked about the percentage of people under age 30 who own private businesses reaching a 24 year low. The primary reasons given were increased financial difficulties among the age group and a lower tolerance for risk.
One such entrepreneur complained it was too difficult because of tougher competition in the internet age.
The broad use of the Web “raises the level of skills that are required to establish a business” because it vastly expands the number of potential competitors, said Daniel Pierson, 25, who lives outside Boston.
Sure, on the surface, more competition could be seen as a major problem, but I believe the internet has actually led to the opposite effect, by making business easier, despite the added number of competitors.
First, knowledge is just a click away. This isn’t our parent’s generation where you needed to go a class for weeks on end – and spend considerable money – to pick up new skills, learn how to use software, create a web site, or connect to others with similar interests. There are countless online courses, youtube instructional videos, and even sites to outsource those tasks. You are only limited by your thirst for knowledge.
Second, there are many more opportunities to find ways to delight and impress clients and stand out from your competition. There are many more avenues available to listen to your clients’ feedback and discover what they value. Find them and implement. Listen for more feedback, and repeat. Are you doing what everyone else is doing? Or are you finding ways to stand above the crowd?
The reasons for fewer business owners under age 30 might be due to many factors, but I wouldn’t consider widespread availability of the internet to be among one of the top 10 reasons. If anything, it reduces the barrier to entry, not the other way around.
