The Millennial entrepreneurship story isn’t just happening in Silicon Valley, Brooklyn and Austin, Texas. In recent years, the NextGen entrepreneurship has seen impressive growth in emerging markets.
According to the 2016 Deloitte Millennial Survey, emerging markets (EM) millennials are more likely to say that “starting their own business” is a sign of success than Millennials in developed nations. Further, according to the 2016 Global Entrepreneur Report, the overall age pattern for entrepreneurship worldwide shows the highest participation rates among the 25–34 and 35–44 year olds.
Entrepreneurship in emerging markets has the power to connect communities, help grow economies and encourage innovation. Recent data has shown that two keys to driving higher levels of EM entrepreneurship are providing resources and funding for emerging markets entrepreneurs, and driving higher levels of female entrepreneur participation.
The Next Generation of Business
Recently, Morgan Stanley’s International Wealth Management team hosted a “The Next Generation of Leaders” event to connect with young business people and entrepreneurs. The event brought together a diverse field of young thought leaders, ages 21 to 32, representing more than 20 countries from around the world, all with a common goal of building their brand, networking with peers and talking entrepreneurship. The event also covered a multitude of financial topics such as wealth planning strategies, impact investing and bringing inclusiveness to venture capital.
Several of the panels focused specifically on developing entrepreneurship. During one panel, a discussion with Kairos Society Business Innovators—a global peer-to-peer community of entrepreneurs supporting entrepreneurs—focused on driving more business creation globally.
“Kairos mission is to inspire more young people to start business both in the U.S. and in emerging markets,” said Alex Fiance, President and CEO of the Kairos Society. “Kairos is truly global. We’re looking at companies in Brazil and Colombia, Singapore among others. We believe the brightest young minds should be focused on the biggest challenges and we believe in breaking down as many barriers are possible to make that happen as quickly as possible.”
Another focus of the event was prepping NextGen leaders in areas of personal finance and brand building. “As an entrepreneur, you’re not just selling your ideas, you’re selling yourself and your vision,” said Mandell Crawley, Morgan Stanley’s Chief Marketing Officer. “Energy attracts energy. You have to light yourself on fire with enthusiasm. And people will come to watch you burn and succeed.”
Although entrepreneurship is on the rise, one areas of struggle continues to be promoting gender and multicultural diversity in funding arenas. Alice Vilma, Executive Director of Morgan Stanley’s Multicultural Client Strategy Committee, spoke about broadening opportunities in venture capital raising. “Demographic shifts for entrepreneurship and funding are taking place now, however, we’re still faced with the daunting statistic that nearly 90% of venture capital is given to someone who isn’t a women or a person of color.” Moreover, according to a recent report, NextGen women entrepreneurs start companies with 50% less capital than their male counterparts.
Some of that is changing in emerging markets. Indeed, six emerging markets economies— Vietnam, Philippines, Thailand, Malaysia, Peru and Indonesia—actually show equal or higher entrepreneurship rates for women than men.4 In the U.S., the fastest growing entrepreneur segments are currently multicultural and women entrepreneurs. The key now is increase access to funding and support to drive higher levels of participation worldwide.