Entrepreneurs Are the Cool Kids on Campus

A new movement fueled by college-aged entrepreneurs and the organizations that support them is just beginning to take off.

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The number of young entrepreneurs, particularly those in college, has seen a significant increase over the last five years, but beyond the raw numbers there has emerged a burgeoning culture founded on the desire to be independent, to be innovative, and to give back to the community—the principles of entrepreneurship. 

Anecdotally, Inc.com has released its annual report on this fresh-faced group of business owners since 2009 and this was the first year that we had over 200 nominations. In the past, we were lucky to get a few dozen. This speaks volumes to the gains this group has made in just one year. However, in the scheme of things, although young entrepreneurs are increasing as a group, the numbers are still quite low, says Michael Simmons, co-founder and CEO at Extreme Entrepreneurship Education Corp.

The Global Entrepreneurship Monitor, which actually tracks early-stage entrepreneurial activity found that in 2010 about 5.5 percent of Americans ages 18 to 24 were actually helming an early-stage start-up (compared with 11 percent of 25 to 34 year olds, which is the most entrepreneurial cohort)—while Census data showed that in 2007, only 2.2 percent of business owners were under 25 years old. A survey by the Kauffman Foundation also found that the desire to start a business over other careers has risen for young adults ages 18 to 21 from 19 percent in 2007 to 25 percent in 2010.

One can ask when this surge in entrepreneurship at earlier stages in life and the growth in the entrepreneurial spirits amongst college students began, but it is hard to pinpoint the trigger as numerous factors have contributed to the shift. 

“If you think about it analytically, the economy has to have played some role in this,” says Jeremy Shepherd, Entrepreneurs’ Organization ambassador to the Network for Teaching Entrepreneurship (NFTE) in Los Angeles. “Not just because people are hesitant to work in corporate America, and because it is simply more difficult to get a job than in 2006.”

The dip in the economy in recent years has been one identified factor, and it has undeniably played some role—a survey by the Young Entrepreneur Council of over 1,600 American males and females ages 16 to 39, found that in 2011 alone 23 percent of those surveyed started a business as a result of being unemployed. 

Sarah Schupp, who was named one of BusinessWeek’s Top 25 Entrepreneurs Under 25, agrees with Shepherd. “One thing I really see amongst these young entrepreneurs is a major feeling of fearlessness, in such tough economic times, we just want to take things into our own hands,” she says. 

People also point to advances in technology as one of the major factors behind this entrepreneurial movement—citing lower barriers to entry and accessibility provided by new advances as triggers. 

“Technology today has been transformative—completely changing the way people did business 10 years ago,” says Schrupp, who experienced first hand the ease and accessibility of new technology in launching her company University Parent Media. 

The ability now to use social media and internet marketing has drastically decreased initial company costs, while at the same time providing outlets to collaborate with others, consult and research information at little or no cost, stresses Schrupp.

“Due to advances in technology, the barriers to entry are much lower, which encourages people—even on a small scale—to get out there and take it as it comes,” says Katie Sowa, assistant director of the Collegiate Entrepreneurs’ Organization. 

But to Dylan Reid, CEO of the Kairos Society, a non-profit organization focused on fostering entrepreneurship amongst college-age students, the growth in entrepreneurship goes beyond the economy and lower costs of starting a business. 

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