The latest Small Business Trends survey conducted by Guidant Financial and LendingClub Corporation found that millennials are the most profitable and racially diverse group of small business owners in the U.S. The survey was conducted on November 6-16, 2018 and involved more than 2,700 male and female business owners with ages ranging from 18 to more than 70.
According to Guidant Financial CEO David Nilssen, millennials only make up 18% of small business but they are proving that one does not need to be part of a specific demographic, invest a lot of money and be a college graduate to be successful in small business.
The findings reveal that millennials are 94% more racially diverse than their boomer counterparts. Sixty-four percent of millennial entrepreneurs are people of color, and only 33% for baby boomers. The largest minority millennials are Hispanics at 25% and African Americans at 23%. Eighty percent of millennial small businesses are profitable, 28% are owned by women and 45% of millennial business owners only have a high school education. The most popular source of funding was cash at 13% and their most common problem is cash flow or lack of capital.