Key Takeaways
- Millennials are shifting towards new paths in enterprise possession, exploring alternatives that provide independence and management.
- This development highlights a rising curiosity in sustainable, hands-on entrepreneurship that balances threat and long-term potential.
Millennials are rewriting the foundations of business ownership. After dropping a way of management throughout the pandemic, many are looking for independence by shopping for current companies — a development referred to as Entrepreneurship Through Acquisition (ETA). As a substitute of ranging from scratch, these entrepreneurs are getting into established corporations and taking the reins, although this path requires a clear-eyed view of what possession actually entails.
Associated: Should Millennial Entrepreneurs Start a Business or Just Buy a Business?
The rise of the “new outdated” ETA
ETAs aren’t new, however millennials are embracing them in rising numbers. In line with enterprise analysis, 16% of small business owners in 2024 had been between 25 and 44 years outdated, up from 13% in 2023.
As places of work reopened after the pandemic, millennials and different professionals realized they needed to chart their very own course. But the financial upheavals of the previous decade left many risk-averse. Shopping for an current enterprise provided a safer path to entrepreneurship — one that also lets them name the pictures.
An ETA is basically a enterprise buy, but it surely differs in two key methods:
- Energetic management – In contrast to conventional buyers who might purchase a enterprise purely for monetary returns, ETA consumers wish to be in cost. They’re entrepreneurs within the truest sense, looking for stability and independence quite than employment safety.
- Resilient companies – ETAs typically goal smaller corporations with decrease capital necessities which can be immune to recessions and automation. Assume childcare, plumbing, HVAC or electrical companies — industries that stay in demand even in robust instances.
This development additionally displays a broader shift away from conventional startup tradition and enterprise capital. After years of tales about founders chasing VC {dollars} whereas taking outsized private dangers, many entrepreneurs are choosing the extra grounded path of shopping for a enterprise backed by tangible property and predictable money circulate. Banks and the Small Enterprise Administration are sometimes extra prepared to finance these acquisitions than riskier startups, making ETAs a sensible route for brand new homeowners.
Resetting expectations
Shopping for a enterprise isn’t a shortcut, and there are frequent misconceptions that may derail ETA offers:
- Headlines typically recommend that retiring child boomers are flooding the market with companies for keen consumers. In actuality, it’s a vendor’s market. Some companies appeal to lots of of potential consumers. Whereas boomers nonetheless personal about 30% of small businesses in 2025, competitors is fierce.
- Some consumers hope to amass a enterprise with no private funding. That not often works. Like shopping for a home, lenders wish to see “pores and skin within the recreation.” Partial financing is frequent, however credibility and dedication require some private capital.
Associated: How the Next Generation of Entrepreneurs Is Outpacing Us — and Why
Methods for ETA success
Each consumers and sellers profit from skilled advisors. Past analyzing financials, advisors will help navigate the emotional and operational realities of enterprise possession.
Proudly owning a enterprise is tough work, particularly within the first two years. You gained’t have the liberty to take prolonged journeys or relocate on a whim. However for those who decide to this intensive early interval, the payoff is actual: by yr three, you can begin shaping a enterprise — and a way of life — that works for you.
ETAs aren’t a assured path to prompt wealth, however for millennials looking for management, independence, and significant work, shopping for a enterprise presents a grounded, achievable technique to construct the life — and legacy — they need.
Key Takeaways
- Millennials are shifting towards new paths in enterprise possession, exploring alternatives that provide independence and management.
- This development highlights a rising curiosity in sustainable, hands-on entrepreneurship that balances threat and long-term potential.
Millennials are rewriting the foundations of business ownership. After dropping a way of management throughout the pandemic, many are looking for independence by shopping for current companies — a development referred to as Entrepreneurship Through Acquisition (ETA). As a substitute of ranging from scratch, these entrepreneurs are getting into established corporations and taking the reins, although this path requires a clear-eyed view of what possession actually entails.
Associated: Should Millennial Entrepreneurs Start a Business or Just Buy a Business?
