Millennial entrepreneurs value purpose over profit

Thursday 10 March 2016

A major new international report from HSBC Private Bank has revealed how millennial entrepreneurs are succeeding in business by valuing purpose over profit.

The research among more than 2,800 active business owners, worth between $250,000 and $20 million, finds that the most successful millennial entrepreneurs are distinguished by a desire to positively affect their community and economy. They are also significantly more likely to admire other successful entrepreneurs for their impact outside of business.

The key findings of the report reveal that:

• Millennial entrepreneurs are running businesses with turnover +141% higher than businesses run by older entrepreneurs ($11.5 million vs $4.8 million).

• 69% of millennial entrepreneurs say that having a positive economic impact was a factor in their decision to go into business, with 59% saying they wanted to have a positive impact in their community.

• Nearly half (47%) of all millennial entrepreneurs are female, compared to 26% of over-55s.

• The highest proportions of millennial entrepreneurs are in the Middle East (63%), Mainland China (44%), and Hong Kong (44%).

• On average, millennials’ main venture employs more than twice as many staff as those of their counterparts over 35 (123 vs 58). They also have active shareholdings in five businesses, compared to just three for those aged over 35.

• Among successful young entrepreneurs, 89% were actively involved in philanthropy last year.

Commenting on the launch of the report, Ewan Stirling, CEO Channel Islands & Isle of Man, HSBC Bank International Ltd said: “The new generation of millennial entrepreneurs are revolutionising the nature of entrepreneurship. They are starting in business younger than previous generations and are involved in a greater number of enterprises. These entrepreneurs are building bigger businesses and creating more jobs.

"They are as motivated to create an impact on the world as they are to make money and they are having a positive impact on their communities. We also see how they are changing the nature of diversity in business; for the first time ever, we are seeing near gender equality in the next generation of millennial entrepreneurs. Women across the world are launching and operating new enterprises at an ever faster pace. This emergence reflects how women are forging ahead and succeeding in business.

“In the same way millennial entrepreneurs take a very hands-on approach to business, this is also reflected in their wealth management and philanthropy. The wealth management industry will need to shift its mind-set to a more entrepreneurial one, and adapt to serve the corporate as well as the personal needs of business-owning clients.”