This article is as relevant today as it was when published by Today Tonight, AFR and SMH a year ago.
While many children stay at home well into their 20s, an alarming number are also looking to their parents for financial support to start a business, simply because they can’t find a job.
Leading business consultant Shannon Daniels said while the Federal Government talked about support for tech start-ups, it was actually mums and dads who were providing loans and rent-free housing to help their children start businesses.
“Millenials are chasing flexibility at work and would prefer to start a business if they can’t find work to suit their lifestyle,” said Mr Daniels.
“In some cases we’re talking about loans of $100,000 which is eating into retirement nest eggs and putting parents at big financial risk,” he said.
“There’s a real shift in employment with the jobless reinventing themselves as business owners either with the financial backing of parents or for older workers their partner is their financial support.”
“This is highlighted by figures from the Australia Bureau of Statistics showing in 2015 a massive increase in businesses having no employees and turning over less than $50,000 a year – a decade ago the bulk of businesses were in the $50,000 to $200,000 a year category.”
“According to ASIC there were 242,620 new company registrations nationally last year compared with 131,776 ten years prior. An increase of 84%.”
“In WA there were 20,307 new registrations in 2015 compared with 10,420 in 2005. An increase of 95%, that’s 11% above the national figure.”
“People go into business knowing how to do a particular job well but they’re clueless how to actually run a business which puts them in danger of financial ruin.”
“As many as 60 percent of businesses close their doors within four years according to the ABS.”
“Entrepreneurs understand the need to learn about business which has led to a seminar cult that’s not a perfect fit for everyone.”
“This addictive thirst for knowledge has people on the merry go round of business seminars but instead of implementing the strategies they’ve learned they’ve moved on to the next seminar.”
As a Perth based Business Consultant and Mentor, Shannon Daniels is best known for helping business owners to create a lifestyle of choice where they can make memories with those that they love. You can reach Shannon through the Emanation website www.emanation.com.au