Young guns lead cultural shift

GENERATION Y entrepreneurs are outpacing their older counterparts in a success story that is being driven by global digital innovation.

entrepreneurs your money amelia zain

GENERATION Y entrepreneurs are outpacing their older counterparts in a success story that is being driven by global digital innovation.

Research released today by American Express shows businesses run by younger entrepreneurs are more profitable, bringing in more revenue and growing product lines faster than the industry average.

About 56 per cent of small-business owners aged between 18 and 34 have grown profits over the past year, compared with 40 per cent of other businesses, the survey of 1012 business owners shows. Also, 46 per cent have grown their client base, a key requirement for a healthy business future, compared with the industry average of 35 per cent.

The results reflect a recent Telstra Business Awards survey, which showed younger business owners dominated finalists across the country  - a trend that American Express says is driving change throughout Australia's entrepreneurial ranks as a result of digital innovation.

"More established business owners are struggling with that, so it is a good opportunity for us to foster that relationship and share the knowledge," small-business marketing and customer engagement head Amelia Zaina (pictured) says.

"It is a changing landscape. Generation Y are more positive during this period of economic recovery, and they offer fresh perspectives to organisations."

American Express has teamed with young entrepreneurs organisation The Entourage to bring new insights to existing business owners. The Entourage founder Jack Delosa says the survey results contradict any belief that Generation Y has ridden the success of the good times but is unprepared for more difficult periods.

"Young entrepreneurship has been on the increase during one of the most difficult economic times, second only to the 1930s Depression," Delosa says.

But there is a need for change, he says, if Australia is to benefit.

"I think there is a bit of a shift towards accepting entrepreneurship as a career path," he says. "It used to be a dirty word ... but with more people taking that path, it is becoming more accepted ... rather than moving from a job and working your way up the ladder."