Millennials Are Buying Boomer Businesses: What Will Change?

The Baby Boomers are retiring. The generation born soon after World War II between the years 1946 and 1964 have reached their senior years and, therefore, are on their way out of the labor force.

It is going to trigger a wave of changes in the business landscape.

Baby Boomers own 2.34 million small businesses across the United States. Together, they employ a total of 25 million Americans. Moreover, nearly a third of the population relies on these Boomer-owned businesses to make the right decisions, especially on building a valuable enterprise and navigating through economic crises.

Millennials Snapping Up Boomer Businesses

The exit of Boomers from the industry is creating new opportunities for young entrepreneurs. Millennials, in particular, are quickly snapping up small businesses that were started and owned by Boomers, allowing the latter to retire and be financially comfortable in their twilight years. Business ownership transfers have been happening across the nation, and most of it involves the passing of the torch from one generation of entrepreneurs to their successors.

According to estimates, Boomers are set to sell up to $10 trillion in assets in the next two decades. The present is a prime selling market, and Millennials are up for the challenge.

With the Millennials taking over, some things are about to change.

Millennials Understand the Need to Adopt New Technology

business tech

Whereas Boomers were a little slow to adopt new technologies, Millennials are more receptive to it. They understand the need to upgrade and keep up with the latest developments in the industry, including the use of new technologies.

One survey found that the vast majority of all Millennial business owners acknowledge the need to develop new technology. They leverage new technology to remain competitive (83 percent) and be on-trend (87 percent). For comparison, only 67 percent of surveyed Boomer business owners had the same views.

Millennial business owners are more likely to digitize documents, go paperless in the office, and implement sophisticated platforms such as ServiceNowPPM (Project Portfolio Management). Because they grew up with technology around them, it is easier for them to understand and quickly embrace innovation.

Millennials Work Fewer Hours

Millennials do not spend all their waking hours buried in work, and it is not an indication that they are lazy or entitled as the older generations accuse them. They know the value of having a work-life balance.

On average, Millennials work 38.8 hours, significantly less than Baby Boomers, who clocked in about 47.1 hours at the office within a week. It also does not mean that Millennials get less work done. They do not spend more time at the office because they do not have to. The technology they incorporate into their work process and save time because of it. As a result, they gain a better work-life balance.

Having a healthy work-life balance allows them more time to spend with loved ones, socialize with friends, pursue hobbies, learn new things, and travel the world. It also leads to lower levels of stress and a reduced likelihood of experiencing burnout.

Millennial Entrepreneurs are Diverse

About 87 percent of business owners above the age of 65 are Caucasian. In comparison, only 48 percent of Millennial small business owners are white. This has led to a more diverse business landscape, better employment opportunities for people of color, a more inclusive workplace, and more representation in the cultural landscape of the U.S.

Tackling racism is important to Millennials. They demand that businesses have a more diverse staff. They want more people of color in positions of power. This does not really come as a surprise. Millennials, along with members of Generation Z, are more tolerant to different cultures, races, and groups compared to Boomers.

They also walk the talk. One study revealed that 47 percent of Millennials consider diversity when choosing future employment. Moreover, roughly half of all Millennial workers describe an ideal workplace as diverse.

Diversity is an advantage in the workplace. Not only does it make the organization look good, but it also leads to increased collaboration and boost in creativity. Most Millennial workers also say that having a diverse leadership is more motivational and stimulating than having a mostly white, male, old, and straight senior management team.

Millennials were raised by Boomers, but the two generations are very different. Now that the younger demographic is taking over while the older is on its way out, things are changing. The business landscape is experiencing an evolution with the rise of Millennial entrepreneurs.

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