Which Generation Has the Most Business Owners?

Business Owner Age Trends By State

From WorkWise, Aug 20, 2019

At WorkWise, we are constantly in awe of the business owners we work with. It’s inspiring to know that people of all backgrounds, ages, races, and genders have built their dreams into businesses. As we work with these business owners, we’ve noticed that generational divides have a lot to do with how our clients think and run their businesses. We began to wonder what generation has the most business owners and where these business owners tend to be located. So we did some research.

We examined US census data that records the age of current business owners who have businesses with at least one employee. Based on the data, these are the results!

Overwhelmingly, Baby Boomers are still the most common generation of business owners. Only 4 states, Utah, North Dakota, Idaho, and Nevada, have a higher percentage of Gen X business owners Meanwhile, Millennials make up a very small percentage of business owners in each state. This is probably to be expected since Millennials are around 35 or under, and according to this study, most entrepreneurs launch their first startup at age 40, and high-growth startups tend to be launched by 45-year-olds. 

Of course, some people tend to be ahead of the curve. The youngest business owners tend to be located in the states listed in the above graphic. California takes the cake with well over 3,000 business owners under 25.

If you’re an entrepreneur aged 35 or under and wondering where you’re most likely to find other Millennial business owners, California is the place to be! California has by far the most Millennial business owners. New York and Texas, having nearly identical totals, come in at second and third place, while Florida comes in fourth, the last state to have a number above 20,000 for Millennial-owned businesses. 

Of course, since California and Texas are such large states, it makes sense that they top the list for a count of Millennial-owned business. To take population counts out of the equation, we looked at the percentage of businesses owned by Millennials, and the results were quite different. North Dakota topped the list for Millennial-owned businesses with nearly 10% of businesses owned by people aged 35 and under. Meanwhile, Hawaii had the lowest percentage of Millennial-owned businesses at just 3.65%! In fact, all of the states within the bottom ten have less than 5% of their businesses owned by a Millennial.

Our goal at WorkWise has always been to support business owners, both aspiring and current, with the best possible service and expertise. We admire those who go after their entrepreneurial dreams and succeed in establishing a business that represents years of work. If you’re looking for customer relationship management services to help your business continue to grow, contact us here. Our team would love to help!

read … Full Report

Coverage:

FC: The states with the oldest and youngest business owners

HNN Analysis: Hawaii has nation’s lowest rate of Millennial-owned businesses