Entrepreneurship Gap

We see start-ups happening in growing numbers among two age groups: The Entrepreneurial Generation (born after 1977) and the Entre-Boomers (born between 1946-1964). So what about those in between? Are the Generation X folks just not entrepreneurial?
According to the data, they are not started businesses at rates equal to those who came before and those who came after them. But, it may be in large part due to their stage in life. They are at the age where they have young families and large mortgages. The thought of quitting the security of their current jobs, although maybe just a illusion, keeps them from taking the plunge even if they have the urge and the right business opportunity.
An article from Business 2.0 offers a plan in “5 ways to start a company (without quitting your day job).”
1. Use Your Salary as Funding
Cut back a little on your discretionary spending and pretend the raise you just got didn’t happen and use that money to slowly fund your start-up. I offer similar advice to young entrepreneurs. I tell them that since they are used to living as poor college students, keep living that way for a few years when they start work and they will be amazed at how much they can save or have available for their business. Remember, the average start-up in the US gets us and running with only about $6,500.
2. Turn Common Complaints Into a Business Plan
So many aspiring entrepreneurs come to me wirh the will, but without the idea. I tell them to stop trying so hard and find a business that builds on what you know about. If you are working, find things that are not working right in your company or your industry and try to figure out a business to take care of that problem. As Barry Moltz likes to say, the best business ideas are those that take care of “people’s pain.”
3. Make Your Boss a Beta Tester
Quite often your good ideas are not in the plans of your employer. If you are honest with them, they may let you develop the business and give you some transition time. Good people are hard to find, so they may be willing to be flexible. It happens more than you’d think.
4. Take Advantage of Your Company’s Reputation
Investors want to see a track record when they look at supporting new businesses. Even though you may not have start-up experience, you have a resume and your employer’s reputation can rub off on you. Bankers will even occasionally fund a start-up if the resume of the founder is strong enough.
5. Convert Your Employer Into a Business Partner

In 2002, when Jeff Hilbert was managing the design services division of Coventor, a chip-design software company in North Carolina, his unit was slated for the chopping block. However, Hilbert noticed that he had recently been winning a lot of business from wireless chip companies, so he asked Coventor to let him spin off the unit as a stand-alone company.
The board went for it and gave the startup — now called WiSpry — $6 million worth of patents and other intellectual property, seven employees, several hundred thousand dollars, and an office in Irvine, Calif., all in exchange for shares in the company.

Although this path to start-up is a little less common, I am currently working with two of our MBA alumni who are pursuing similar deals.
So come on Generation X! Show us your entrepreneurial spirit!