Last week a young man called me wanting to sell his smaller service business. In two years the high school grad had built a business from scratch doing about $130,000 in revenue and 40k in cash flow. We met and I told him he should keep it …he had done the hard work….no trim back on the expenses associated with start-up and scaling it.
Our conversation went to his education, his circle of influence and friends, and to the appalling lack of mentorship and encouragement encountered by men and women with the guts to get into business. There is no doubt that our education system was and is designed to create employees for companies and business models that largely do not exist or will not in the very near future. So it promoted me to ask myself a question …why do we not encourage Entrepreneurship in the real sense and unleash the power of American Ingenuity?
There are several reasons why more Americans have not turned to small business ownership as a viable alternative to college and massive debt. Here are a few possible factors:
- Lack of knowledge and resources: Starting a small business can be daunting, and many people simply don’t know where to begin. They may lack the necessary knowledge and resources to get started, such as access to capital or business expertise. Additionally, some may not be aware of the opportunities available to them, or they may underestimate the potential of entrepreneurship as a viable career option.
- Risk aversion: Starting a small business involves taking on significant financial risk. Many people may be hesitant to take such a risk, particularly if they have limited financial resources or dependents to support. In contrast, pursuing a traditional college degree may feel like a safer, more predictable path.
- Cultural norms: In the United States, there is often a strong cultural emphasis on the value of higher education. Many people view college as a necessary step towards success, and may feel pressure from family and peers to pursue a traditional degree. This can create a barrier to considering alternative paths, such as entrepreneurship.
- Perceived barriers to entry: Starting a small business may be perceived as requiring significant resources, such as connections, business acumen, or even personal qualities like charisma or sales skills. These perceived barriers to entry may deter potential entrepreneurs who feel they do not possess these qualities.
- Systemic barriers: There are also systemic barriers that may make it more difficult for certain populations to pursue entrepreneurship. For example, people from historically marginalized communities may face discrimination in access to capital, business networks, or other resources that are necessary for success in entrepreneurship.
These are just a few possible reasons why more Americans have not turned to small business ownership as an alternative to college and massive debt. To encourage more people to consider entrepreneurship, it may be helpful to address some of these barriers and provide more resources and support for aspiring entrepreneurs.