Thinking Outside the Box for Youth Engagement and Attraction In a culture that often dramatizes entrepreneurship as a quick and easy path to fame and fortune, we need to do our best to give youth realistic paths for long-term entrepreneurial success. The truth is that only ten percent of startups are successful after five years, but seventy percent of people who buy a business succeed during their first five years. Buying a business instead of creating a startup is one proven way to set our youth up for success as entrepreneurs.
The difference is mentorship. The majority of business owners selling their business are willing to stay on and mentor the new owners. This guidance helps mitigate the potential pitfalls many young entrepreneurs fall into. A good mentor can set them on the path to success. There are also a number of other factors why entrepreneurs, young or old, consider buying an existing business instead of starting their own. These include: access to financing, existing cash flow, established name and brand in the community, corporate knowledge transfer with the current staff, and ability to expand market share quickly.
Helping the next generation buy businesses will also help our local economies by:
Becoming an international champion of entrepreneurship
Curbing youth unemployment
Preventing small businesses in the community from shutting down
Maintaining tax revenue from existing businesses
Providing mentorship opportunities for underrepresented and minority groups such as women, youth, First Nations & Metis, newly arrived immigrants, and military veterans transitioning into civilian life.
This is why SuccessionMatching and a number of private and public organizations have partnered on a program to help match graduates from post-secondary institutions with retiring business owners. It’s an extension of the SuccessionMatching Community Project (SMCP), a three years community driven boots on the ground approach to business transitions.
On August 9th, we launched the pilot program with Edwards School of Business at the University of Saskatchewan. Any UofS grads interested in buying a business are directed to BDC, FCC, or RBC to meet with an Account Manager who discusses what would be required to receive financing to purchase a business and any individuals that demonstrate business acumen receive a coupon code for free access to SuccessionMatching.
On October 5th, we will be announcing an extension of the program across Canada with a number of other partner organizations and institutions.