Policymakers often point to entrepreneurship as a way to combat unemployment among twentysomethings. But it's an unrealistic solution, says Scott Shane
Across almost all industrialized countries, unemployment rates are highest among people just out of college. In the U.S., 17.2 percent of 20- to 24-year-olds are out of work. Clearly we need to do something to remedy this problem now and prevent it in the future.
Policymakers often talk about increasing the number of young people who become entrepreneurs. While I'd like to see that happen too, the problem is very few young people start their own businesses. The share of employed people ages 20 to 24 who run their own incorporated businesses is only 0.3 percent, according to the most recent Bureau of Labor Statistics data. That's lower than in any other age group except 16 to 19, and is 1/25th the rate among those ages 65 to 69.
Developing policy to increase rates of entrepreneurship among young people requires an understanding of why young people tend not to start their own businesses. So why aren't more young people entrepreneurs?
To read the full, original article click on this link: Why So Few Young People Start Businesses - BusinessWeek
Author: Scott Shane
