Entrepreneurs come in all shapes, sizes and ages, but young entrepreneurs face their own challenges. Here are the advantages and disadvantages:
- Less risk. Young entrepreneurs often have fewer financial commitments and so have less to lose if a business turns out badly.
- Fresh ideas. In industries such as fashion, retailing and advertising, entrepreneurs with fresh ideas who can indentify with young consumers have a distinct advantage.
- Fewer commitments. Running a business involves huge time commitments, so entrepreneurs with fewer family commitments are well placed to pour the hours into their company.
- Time. So what if you make a few mistakes at the start of your career? If you are young, you’ve got plenty of time to learn the lessons and even start again.
- A lack of experience. The biggest issue for young entrepreneurs is that there is much that they don’t know. Learning on the job can be costly when running a business.
- Time commitments. When you’re stuck at work late at night meeting a deadline for a client, your friends may well be out enjoying a drink. Are you prepared to miss out?
- Failure. When a start-up goes wrong, it can be very costly. If you are young and have few assets to fall back on, your ability to absorb a financial blow like this may be limited.
- Funding. Banks are nervous about lending to start-up entrepreneurs, and particularly nervous about lending to younger entrepreneurs who generally do not have assets to offer as security over a loan.